S. 371 - Building Up Independent Lives and Dreams Act (BUILD Act)

This bill aims to provide regulatory relief to charitable organizations that offer housing assistance and introduces specific requirements for mortgage loan transactions. It makes amendments to two existing laws: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA).

Section 1 - Short Title:

The bill may be referred to as the "Building Up Independent Lives and Dreams Act" or the "BUILD Act".

Section 2 - Mortgage Loan Transaction Disclosure Requirements:

(a) Amendment to TILA: This section modifies Section 105 of the Truth in Lending Act by adding a new subsection (e). This subsection specifies disclosure requirements for mortgage loan transactions that involve a residential mortgage loan offered at 0% interest with reasonable fees by a charitable organization that is tax-exempt under section 501(c)(3) of the Internal Revenue Code. The forms HUD-1 and GFE, along with the Loan Model Form H-2 (as shown in Appendix H to part 1026 of title 12 of the Code of Federal Regulations), will serve as an appropriate model form for disclosure purposes.

(b) Amendment to RESPA: This section adds a new subsection (d) to Section 4 of the Real Estate Settlement Procedures Act. Similar to the TILA amendment, it allows a tax-exempt organization described in section 501(c)(3) to use forms HUD–1 and GFE, along with the Loan Model Form H–2, for disclosure in a mortgage loan transaction involving a residential mortgage loan offered at 0% interest with reasonable fees. This option can be used instead of the existing disclosure requirements under subsection (a) of this section.

(c) Effective Date: The amendments made by subsections (a) and (b) will come into effect on the date of the enactment of this Act.

Approved by:

Speaker of the House of Representatives

Vice President of the United States and President of the Senate

S 371 BUILD Act Building Up Independent Lives and Dreams Act

US Congress 116th Congress

Bill Texts

Enrolled 01/01/2021

Engrossed 12/22/2020

Introduced 02/22/2019

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Sponsors (6)

Sen. Angus King

Co-Sponsor

Sen. David Perdue

Co-Sponsor

Sen. Thom Tillis

Co-Sponsor

Sen. Kyrsten Sinema

Co-Sponsor

Sen. Chris Van Hollen

Co-Sponsor

Sen. Deb Fischer

Primary Sponsor