12 U.S.C. § 2603 — Uniform settlement statement

Page 1444 TITLE 12—BANKS AND BANKING § 2603 1 See References in Text note below. secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same prop- erty’’ after ‘‘families’’. Par. (3). Pub. L. 102–550, § 908(a), inserted ‘‘the origina- tion of a federally related mortgage loan (including, but not limited to, the taking of loan applications, loan processing, and the underwriting and funding of loans),’’ after ‘‘broker,’’. 1983—Pars. (7), (8). Pub. L. 98–181 added pars. (7) and (8). 1976—Par. (1). Pub. L. 94–205, § 2(1), inserted ‘‘(other than temporary financing such as a construction loan)’’ in introductory text. Par. (1)(A). Pub. L. 94–205, § 2(2), inserted ‘‘a first lien on’’ after ‘‘is secured by’’. Par. (1)(B)(iii). Pub. L. 94–205, § 2(3)–(5), substituted ‘‘is intended to be sold by the originating lender to’’ for ‘‘is eligible for purchase by’’ and ‘‘a’’ and ‘‘is to’’ for ‘‘from any’’ and ‘‘could’’, respectively, and struck out ‘‘or’’ after ‘‘the Government National Mortgage Asso- ciation’’. Par. (1)(B)(iv). Pub. L. 94–205, § 2(6), inserted ‘‘, except that for the purpose of this chapter, the term ‘creditor’ does not include any agency or instrumentality of any State’’ after ‘‘more than $1,000,000 per year’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–550, title IX, § 908(d), Oct. 28, 1992, 106 Stat. 3874, provided that: ‘‘This section [amending this sec- tion and enacting provisions set out below] shall take effect on the date of enactment of this Act [Oct. 28, 1992] and shall not apply retroactively.’’ EFFECTIVE DATE OF 1983 AMENDMENT Pub. L. 98–181, title I [title IV, § 461(f)], Nov. 30, 1983, 97 Stat. 1232, provided that: ‘‘The amendments made by this section [amending this section and sections 2607, 2614, and 2617 of this title] shall become effective on January 1, 1984.’’ EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–205, § 12, Jan. 2, 1976, 89 Stat. 1160, provided that: ‘‘The provisions of this Act and the amendments made hereby [enacting section 2617 of this title, amend- ing this section, sections 2603, 2604, 2607, 2609, and 2616 of this title, and section 1631 of Title 15, Commerce and Trade, repealing sections 2605 and 2606 of this title, and enacting and amending provisions set out as notes under section 2601 of this title] shall become effective upon enactment [Jan. 2, 1976]. The Secretary may sus- pend for up to one hundred and eighty days from the date of enactment of this Act [Jan. 2, 1976] any provi- sion of section 4 and section 5 of the Real Estate Settle- ment Procedures Act of 1974 [sections 2603 and 2604 of this title], as amended by this Act.’’ EFFECTIVE DATE Section effective 180 days after Dec. 22, 1974, see sec- tion 20 of Pub. L. 93–533, set out as a note under section 2601 of this title. REGULATIONS Pub. L. 102–550, title IX, § 908(c), Oct. 28, 1992, 106 Stat. 3874, provided that: ‘‘The Secretary of Housing and Urban Development shall issue regulations to imple- ment the amendments made by this section [amending this section] not later than the expiration of the 180- day period beginning on the date of the enactment of this Act [Oct. 28, 1992]. The regulations shall be issued after notice and opportunity for public comment pursu- ant to the provisions of section 553 of title 5, United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section).’’ § 2603. Uniform settlement statement (a) Disclosure for mortgage loan transactions The Bureau shall publish a single, integrated disclosure for mortgage loan transactions (in- cluding real estate settlement cost statements) which includes the disclosure requirements of this section and section 2604 of this title, in con- junction with the disclosure requirements of the Truth in Lending Act [15 U.S.C. 1601 et seq.] that, taken together, may apply to a trans- action that is subject to both or either provi- sions of law. The purpose of such model disclo- sure shall be to facilitate compliance with the disclosure requirements of this chapter 1 and the Truth in Lending Act, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. Such forms shall conspicuously and clearly itemize all charges imposed upon the borrower and all charges imposed upon the seller in con- nection with the settlement and shall indicate whether any title insurance premium included in such charges covers or insures the lender’s in- terest in the property, the borrower’s interest, or both. The Bureau may, by regulation, permit the deletion from the forms prescribed under this section of items which are not, under local laws or customs, applicable in any locality, ex- cept that such regulation shall require that the numerical code prescribed by the Bureau be re- tained in forms to be used in all localities. Noth- ing in this section may be construed to require that that part of the standard forms which re- lates to the borrower’s transaction be furnished to the seller, or to require that that part of the standard forms which relates to the seller be furnished to the borrower. (b) Availability for inspection; exceptions The forms prescribed under this section shall be completed and made available for inspection by the borrower at or before settlement by the person conducting the settlement, except that (1) the Bureau may exempt from the require- ments of this section settlements occurring in localities where the final settlement statement is not customarily provided at or before the date of settlement, or settlements where such re- quirements are impractical and (2) the borrower may, in accordance with regulations of the Bu- reau, waive his right to have the forms made available at such time. Upon the request of the borrower to inspect the forms prescribed under this section during the business day imme- diately preceding the day of settlement, the per- son who will conduct the settlement shall per- mit the borrower to inspect those items which are known to such person during such preceding day. (c) Disclosure of fees The standard form described in subsection (a) may include, in the case of an appraisal coordi- nated by an appraisal management company (as Page 1445 TITLE 12—BANKS AND BANKING § 2604 such term is defined in section 3350(11) of this title), a clear disclosure of— (1) the fee paid directly to the appraiser by such company; and (2) the administration fee charged by such company. (d) Disclosure for charitable mortgage loan transactions With respect to a mortgage loan transaction involving a residential mortgage loan offered at 0 percent interest with only bonafide and rea- sonable fees and that is primarily for charitable purposes, an organization described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title may use forms HUD–1 and GFE (as defined under section 1024.2(b) of title 12, Code of Federal Regulations) together with a disclosure substantially in the form of the Loan Model Form H–2 (as depicted in Appendix H to part 1026 of title 12, Code of Fed- eral Regulations), collectively, in lieu of the dis- closure published under subsection (a) of this section. (Pub. L. 93–533, § 4, Dec. 22, 1974, 88 Stat. 1725; Pub. L. 94–205, § 3, Jan. 2, 1976, 89 Stat. 1157; Pub. L. 104–208, div. A, title II, § 2103(g)(1), Sept. 30, 1996, 110 Stat. 3009–401; Pub. L. 111–203, title X, § 1098(2), title XIV, § 1475, July 21, 2010, 124 Stat. 2103, 2200; Pub. L. 116–342, § 2(b), Jan. 13, 2021, 134 Stat. 5134.) Editorial Notes REFERENCES IN TEXT The Truth in Lending Act, referred to in subsec. (a), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables. This chapter, referred to in subsec. (a), was in the original ‘‘this title’’ and was translated as reading ‘‘this Act’’, meaning Pub. L. 93–533, which is classified principally to this chapter, to reflect the probable in- tent of Congress, because Pub. L. 93–533 does not con- tain titles. AMENDMENTS 2021—Subsec. (d). Pub. L. 116–342 added subsec. (d). 2010—Subsec. (a). Pub. L. 111–203, § 1098(2), substituted ‘‘The Bureau shall publish a single, integrated disclo- sure for mortgage loan transactions (including real es- tate settlement cost statements) which includes the disclosure requirements of this section and section 2604 of this title, in conjunction with the disclosure require- ments of the Truth in Lending Act that, taken to- gether, may apply to a transaction that is subject to both or either provisions of law. The purpose of such model disclosure shall be to facilitate compliance with the disclosure requirements of this chapter and the Truth in Lending Act, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical na- ture of the disclosures.’’ for ‘‘The Secretary, in con- sultation with the Administrator of Veteran’s Affairs, the Federal Deposit Insurance Corporation, and the Di- rector of the Office of Thrift Supervision, shall develop and prescribe a standard form for the statement of set- tlement costs which shall be used (with such variations as may be necessary to reflect differences in legal and administrative requirements or practices in different areas of the country) as the standard real estate settle- ment form in all transactions in the United States which involve federally related mortgage loans.’’, ‘‘Such forms’’ for ‘‘Such form’’, ‘‘Bureau may’’ for ‘‘Secretary may’’, ‘‘the forms’’ for ‘‘the form’’, and ‘‘prescribed by the Bureau’’ for ‘‘prescribed by the Sec- retary’’ and substituted ‘‘standard forms’’ for ‘‘stand- ard form’’ in two places. Subsec. (b). Pub. L. 111–203, § 1098(2)(B), (C), sub- stituted ‘‘forms’’ for ‘‘form’’ wherever appearing and ‘‘Bureau’’ for ‘‘Secretary’’ in two places. Subsec. (c). Pub. L. 111–203, § 1475, added subsec. (c). 1996—Subsec. (a). Pub. L. 104–208 substituted ‘‘Direc- tor of the Office of Thrift Supervision’’ for ‘‘Federal Home Loan Bank Board’’. 1976—Subsec. (a). Pub. L. 94–205, § 3(1)–(3), designated existing provisions as subsec. (a), struck out ‘‘min- imum’’ after ‘‘with such’’ and ‘‘unavoidable’’ after ‘‘necessary to reflect’’ in parenthetical provisions cov- ering allowable regional variations in the uniform set- tlement statement, and substituted provisions author- izing the Secretary to permit deletions from the stand- ard form for provisions requiring that the standard form contain all the information and data required under the Truth in Lending Act. Subsec. (b). Pub. L. 94–205, § 3(4), added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 116–342, § 2(c), Jan. 13, 2021, 134 Stat. 5135, pro- vided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and section 1604 of Title 15, Commerce and Trade] shall take effect on the date of the enactment of this Act [Jan. 13, 2021].’’ EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 1098(2) of Pub. L. 111–203 effec- tive on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. Amendment by section 1475 of Pub. L. 111–203 effec- tive on the date on which final regulations imple- menting that amendment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–205 effective Jan. 2, 1976, with the Secretary authorized to suspend for up to 180 days from Jan. 2, 1976, any provision of this section as amended by Pub. L. 94–205, see section 12 of Pub. L. 94–205, set out as a note under section 2602 of this title. EFFECTIVE DATE Section effective 180 days after Dec. 22, 1974, see sec- tion 20 of Pub. L. 93–533, set out as a note under section 2601 of this title. § 2604. Home buying information booklets (a) Preparation and distribution The Director of the Bureau of Consumer Fi- nancial Protection (hereafter in this section re- ferred to as the ‘‘Director’’) shall prepare, at least once every 5 years, a booklet to help con- sumers applying for federally related mortgage loans to understand the nature and costs of real estate settlement services. The Director shall prepare the booklet in various languages and cultural styles, as the Director determines to be appropriate, so that the booklet is understand- able and accessible to homebuyers of different ethnic and cultural backgrounds. The Director shall distribute such booklets to all lenders that make federally related mortgage loans. The Di- rector shall also distribute to such lenders lists,