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12 U.S.C. § 4903 — Disclosure requirements
Federal law — U.S. Code and appendices · legal_authorities
**(a) Disclosures for new mortgages at time of transaction**
(1) **Disclosures for non-exempted transactions** — In any case in which private mortgage insurance is required in connection with a residential mortgage transaction (other than a residential mortgage transaction described in [section 4902(g)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/g/1&num=0&edition=prelim)), at the time at which the transaction is consummated, the mortgagee shall provide to the mortgagor—
(A) if the transaction relates to a fixed rate mortgage—
(i) a written initial amortization schedule; and
(ii) written notice—
(I) that the mortgagor may cancel the requirement in accordance with [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim) indicating the date on which the mortgagor may request cancellation, based solely on the initial amortization schedule;
(II) that the mortgagor may request cancellation in accordance with [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim) earlier than provided for in the initial amortization schedule, based on actual payments;
(III) that the requirement for private mortgage insurance will automatically terminate on the termination date in accordance with [section 4902(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/b&num=0&edition=prelim), and what that termination date is with respect to that mortgage; and
(IV) that there are exemptions to the right to cancellation and automatic termination of a requirement for private mortgage insurance in accord
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Source location: Title 12, Chapter 49, § 4903; chapter-049-homeowners-protection.md
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**(a) Disclosures for new mortgages at time of transaction**
(1) **Disclosures for non-exempted transactions** — In any case in which private mortgage insurance is required in connection with a residential mortgage transaction (other than a residential mortgage transaction described in [section 4902(g)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/g/1&num=0&edition=prelim)), at the time at which the transaction is consummated, the mortgagee shall provide to the mortgagor—
(A) if the transaction relates to a fixed rate mortgage—
(i) a written initial amortization schedule; and
(ii) written notice—
(I) that the mortgagor may cancel the requirement in accordance with [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim) indicating the date on which the mortgagor may request cancellation, based solely on the initial amortization schedule;
(II) that the mortgagor may request cancellation in accordance with [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim) earlier than provided for in the initial amortization schedule, based on actual payments;
(III) that the requirement for private mortgage insurance will automatically terminate on the termination date in accordance with [section 4902(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/b&num=0&edition=prelim), and what that termination date is with respect to that mortgage; and
(IV) that there are exemptions to the right to cancellation and automatic termination of a requirement for private mortgage insurance in accordance with [section 4902(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/g&num=0&edition=prelim), and whether such an exemption applies at that time to that transaction; and
(B) if the transaction relates to an adjustable rate mortgage, a written notice that—
(i) the mortgagor may cancel the requirement in accordance with [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim) on the cancellation date, and that the servicer will notify the mortgagor when the cancellation date is reached;
(ii) the requirement for private mortgage insurance will automatically terminate on the termination date, and that on the termination date, the mortgagor will be notified of the termination or that the requirement will be terminated as soon as the mortgagor is current on loan payments; and
(iii) there are exemptions to the right of cancellation and automatic termination of a requirement for private mortgage insurance in accordance with [section 4902(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/g&num=0&edition=prelim), and whether such an exemption applies at that time to that transaction.
(2) **Disclosures for excepted transactions** — In the case of a residential mortgage transaction described in [section 4902(g)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/g/1&num=0&edition=prelim), at the time at which the transaction is consummated, the mortgagee shall provide written notice to the mortgagor that in no case may private mortgage insurance be required beyond the date that is the midpoint of the amortization period of the loan, if the mortgagor is current on payments required by the terms of the residential mortgage.
(3) **Annual disclosures** — If private mortgage insurance is required in connection with a residential mortgage transaction, the servicer shall disclose to the mortgagor in each such transaction in an annual written statement—
(A) the rights of the mortgagor under this chapter to cancellation or termination of the private mortgage insurance requirement; and
(B) an address and telephone number that the mortgagor may use to contact the servicer to determine whether the mortgagor may cancel the private mortgage insurance.
(4) **Applicability** — Paragraphs (1) through (3) shall apply with respect to each residential mortgage transaction consummated on or after the date that is 1 year after July 29, 1998.
**(b) Disclosures for existing mortgages** If private mortgage insurance was required in connection with a residential mortgage entered into at any time before the effective date of this chapter, the servicer shall disclose to the mortgagor in each such transaction in an annual written statement—
(1) that the private mortgage insurance may, under certain circumstances, be canceled by the mortgagor (with the consent of the mortgagee or in accordance with applicable State law); and
(2) an address and telephone number that the mortgagor may use to contact the servicer to determine whether the mortgagor may cancel the private mortgage insurance.
**(c) Inclusion in other annual notices** The information and disclosures required under subsection (b) and subsection (a)(3) may be provided on the annual disclosure relating to the escrow account made as required under the Real Estate Settlement Procedures Act of 1974 [[12 U.S.C. 2601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2601&num=0&edition=prelim) et seq.], or as part of the annual disclosure of interest payments made pursuant to Internal Revenue Service regulations, and on a form promulgated by the Internal Revenue Service for that purpose.
**(d) Standardized forms** The mortgagee or servicer may use standardized forms for the provision of disclosures required under this section, which disclosures shall relate to the mortgagor’s rights under this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Congress finds that significant reforms in the real estate settlement process are needed to insure that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process and are protected from unnecessarily high settlement charges caused by certain abusive practices that have developed in some areas of the country. The Congress also finds that it has been over two years since the Secretary of Housing and Urban Development and the Administrator of Veterans’ Affairs submitted their joint report to the Congress on “Mortgage Settlement Costs” and that the time has come for the recommendations for Federal legislative action made in that report to be implemented.
**(b)** It is the purpose of this chapter to effect certain changes in the settlement process for residential real estate that will result—
(1) in more effective advance disclosure to home buyers and sellers of settlement costs;
(2) in the elimination of kickbacks or referral fees that tend to increase unnecessarily the costs of certain settlement services;
(3) in a reduction in the amounts home buyers are required to place in escrow accounts established to insure the payment of real estate taxes and insurance; and
(4) in significant reform and modernization of local recordkeeping of land title information.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2601
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Federal law — U.S. Code and appendices · legal_authorities
In this chapter, the following definitions shall apply:
(1) **Adjustable rate mortgage** — The term “adjustable rate mortgage” means a residential mortgage that has an interest rate that is subject to change. A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this chapter.
(2) **Cancellation date** — The term “cancellation date” means—
(A) with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—
(i) based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or
(ii) based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and
(B) with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—
(i) based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or
(ii) based solely on actual payments, first reaches 80 percent of the original value of the property securing the loan.
(3) **Fixed rate mortgage** — The term “fixed rate mortgage” means a residential mortgage that has an interest rate that is not subject to change.
(4) **Good payment history** — The term “good
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4901
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Federal law — U.S. Code and appendices · legal_authorities
Page 1442
TITLE 12—BANKS AND BANKING
§ 2601
shall be entitled to escheat or take custody of
the sum payable on such money order, trav-
eler’s check, or similar written instrument, to
the extent of that State’s power under its own
laws to escheat or take custody of such sum,
subject to the right of the State of purchase to
recover such sum from the State of principal
place of business if and when the law of the
State of purchase makes provision for escheat
or custodial taking of such sum.
(Pub. L. 93–495, title VI, § 603, Oct. 28, 1974, 88
Stat. 1525.)
CHAPTER 27—REAL ESTATE SETTLEMENT
PROCEDURES
Sec.
2601.
Congressional findings and purpose.
2602.
Definitions.
2603.
Uniform settlement statement.
2604.
Home buying information booklets.
2605.
Servicing of mortgage loans and administra-
tion of escrow accounts.
2606.
Exempted transactions.
2607.
Prohibition against kickbacks and unearned
fees.
2608.
Title companies; liability of seller.
2609.
Limitation on requirement of advance depos-
its in escrow accounts.
2610.
Prohibition of fees for preparation of truth-
in-lending, uniform settlement, and escrow
account statements.
2611 to 2613. Repealed.
2614.
Jurisdiction of courts; limitations.
2615.
Contracts and liens; validity.
2616.
State laws unaffected; inconsistent Federal
and State provisions.
2617.
Authority of Bureau.
§ 2601. Congressional findings and purpose
(a) The Congress finds that significant reforms
in the real estate settlement process are needed
to insure that consumers throughout the Nation
are provided with greater and more timely infor-
mation on the nature and costs of the settle-
ment process and are protected from unneces-
sarily high settlement charges caused by certain
abusive practices that have develo
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 2601
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 2601. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1770
TITLE 12—BANKS AND BANKING
§ 4903
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 1 year after July 29, 1998, see section
13 of Pub. L. 105–216, set out as a note under section 4901
of this title.
§ 4903. Disclosure requirements
(a) Disclosures for new mortgages at time of
transaction
(1) Disclosures for non-exempted transactions
In any case in which private mortgage insur-
ance is required in connection with a residen-
tial mortgage transaction (other than a resi-
dential mortgage transaction described in sec-
tion 4902(g)(1) of this title), at the time at
which the transaction is consummated, the
mortgagee shall provide to the mortgagor—
(A) if the transaction relates to a fixed
rate mortgage—
(i) a written initial amortization sched-
ule; and
(ii) written notice—
(I) that the mortgagor may cancel the
requirement in accordance with section
4902(a) of this title indicating the date on
which the mortgagor may request can-
cellation, based solely on the initial am-
ortization schedule;
(II) that the mortgagor may request
cancellation in accordance with section
4902(a) of this title earlier than provided
for in the initial amortization schedule,
based on actual payments;
(III) that the requirement for private
mortgage insurance will automatically
terminate on the termination date in ac-
cordance with section 4902(b) of this
title, and what that termination date is
with respect to that mortgage; and
(IV) that there are exemptions to the
right to cancellation and automatic ter-
mination of a requirement for private
mortgage insurance in accordance with
section 4902(g) of this title, and whether
such an exemption applies at that time
to that transaction; and
(B) if the transaction relates to an adjust-
able
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 4903
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.