SB 541 - This act institutes various provisions regulating practices involved in making residential mortgage loans. Creditors are barred from knowingly or intentionally making a residential mortgage loan that refinances an existing residential mortgage loan when the new loan does not have reasonable, tangible benefit to the borrower. Before issuing a residential mortgage loan, the creditor shall verify the borrower's reasonable ability to pay the scheduled payments. The standards for reasonableness are enumerated. Creditors are barred from making subprime loans containing prepayment penalties. Creditors shall not make false, deceptive, or misleading statements or advertisements in connection with a residential mortgage loan. Residential mortgage loans shall not finance property, life, or health insurance premiums, debt cancellation or suspension agreements, or products that are not related to the loan closing such as auto club memberships or the monitoring of credit reports. Mortgage brokers shall act as agents of the borrower with reasonable care, in the borrower's best interest and according to the instructions of the borrower. Brokers shall have the duty to disclose all material facts relating to the transaction, and account for all of the borrower's money received by the broker. Those in violation shall be liable for punitive, actual, and consequential damages, court costs, damages equal to two times the amount of all lender and broker fees. CHRIS HOGERTY