124 STAT. 2140 PUBLIC LAW 111–203—JULY 21, 2010 directly compensated or will directly compensate a mort- gage originator may pay a mortgage originator any origina- tion fee or charge except bona fide third party charges not retained by the creditor, mortgage originator, or an affiliate of the creditor or mortgage originator. ‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), a mortgage originator may receive from a person other than the consumer an origination fee or charge, and a person other than the consumer may pay a mortgage origi- nator an origination fee or charge, if— ‘‘(i) the mortgage originator does not receive any compensation directly from the consumer; and ‘‘(ii) the consumer does not make an upfront pay- ment of discount points, origination points, or fees, however denominated (other than bona fide third party charges not retained by the mortgage originator, cred- itor, or an affiliate of the creditor or originator), except that the Board may, by rule, waive or provide exemp- tions to this clause if the Board determines that such waiver or exemption is in the interest of consumers and in the public interest. ‘‘(3) REGULATIONS.—The Board shall prescribe regulations to prohibit— ‘‘(A) mortgage originators from steering any consumer to a residential mortgage loan that— ‘‘(i) the consumer lacks a reasonable ability to repay (in accordance with regulations prescribed under section 129C(a)); or ‘‘(ii) has predatory characteristics or effects (such as equity stripping, excessive fees, or abusive terms); ‘‘(B) mortgage originators from steering any consumer from a residential mortgage loan for which the consumer is qualified that is a qualified mortgage (as defined in section 129C(b)(2)) to a residential mortgage loan that is not a qualified mortgage; ‘‘(C) abusive or unfair lending practices that promote disparities among consumers of equal credit worthiness but of different race, ethnicity, gender, or age; and ‘‘(D) mortgage originators from— ‘‘(i) mischaracterizing the credit history of a con- sumer or the residential mortgage loans available to a consumer; ‘‘(ii) mischaracterizing or suborning the mischaracterization of the appraised value of the prop- erty securing the extension of credit; or ‘‘(iii) if unable to suggest, offer, or recommend to a consumer a loan that is not more expensive than a loan for which the consumer qualifies, discouraging a consumer from seeking a residential mortgage loan secured by a consumer’s principal dwelling from another mortgage originator. ‘‘(4) RULES OF CONSTRUCTION.—No provision of this sub- section shall be construed as— ‘‘(A) permitting any yield spread premium or other similar compensation that would, for any residential mort- gage loan, permit the total amount of direct and indirect compensation from all sources permitted to a mortgage Waiver authority.
