Home Equity Lending Integrity Act
- Bill Number
- S. 4803
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-06-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-07-08T15:45:22Z
AI-Generated Summary
Purpose The legislation amends the Truth in Lending Act to clarify that home equity investment loans are covered under the definition of residential mortgage loans. This ensures these transactions receive the same consumer protections as traditional mortgages.
Key Provisions
- Amends Section 103 of the Truth in Lending Act to explicitly include home equity investment loans within the meaning of a residential mortgage loan.
- Defines a "home equity investment loan" as a transaction secured by a mortgage or similar interest on a dwelling, in which a consumer receives money or value in exchange for an interest in the property and a contingent or fixed obligation to repay based on the property's value.
- Directs the Bureau of Consumer Financial Protection to issue regulations applying civil liability rules to violations involving these loans.
- Includes a statement that the amendment reflects the current administration of the law and introduces no substantive change.
Significant Changes to Existing Law The bill adds a new defined term for home equity investment loans and extends the scope of residential mortgage loan protections to cover them. It requires new regulations to enforce liability provisions for these transactions.
Potential Impacts
- Government agencies: The Bureau of Consumer Financial Protection must develop and implement specific regulations.
- Citizens: Borrowers entering home equity investment arrangements gain access to disclosure requirements and remedies for violations.
- No direct effects on international relations are addressed.
Main Stakeholders Affected
- Consumers obtaining home equity investment loans.
- Lenders and financial institutions offering these products.
- The Bureau of Consumer Financial Protection as the primary regulator.
- Real estate and mortgage industry participants involved in property-secured financing.
Notable Legal, Constitutional, or Political Implications The measure applies existing consumer credit rules to a newer form of property-based financing. The sense of Congress provision emphasizes continuity with prior interpretations of the Truth in Lending Act, limiting the scope of any new obligations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-06-17: Introduced in Senate
Bill Versions
- Home Equity Lending Integrity Act — issued 2026-06-17 — PDF (3 pages)