124 
and cultural backgrounds. The Secretary shall distribute 
such booklets to all lenders that make federally related mort-
gage loans. The Secretary shall also distribute to such lend-
ers lists, organized by location, of homeownership counselors 
certified under section 106(e) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701x(e)) for use in 
complying with the requirement under subsection (c) of this 
section. 
‘‘(b) CONTENTS.—Each booklet shall be in such form 
and detail as the Secretary shall prescribe and, in addition 
to such other information as the Secretary may provide, 
shall include in plain and understandable language the fol-
lowing information: 
‘‘(1) A description and explanation of the nature 
and purpose of the costs incident to a real estate set-
tlement or a federally related mortgage loan. The de-
scription and explanation shall provide general infor-
mation about the mortgage process as well as specific 
information concerning, at a minimum— 
‘‘(A) balloon payments; 
‘‘(B) prepayment penalties; and 
‘‘(C) the trade-off between closing costs and 
the interest rate over the life of the loan. 
‘‘(2) An explanation and sample of the uniform 
settlement statement required by section 4. 
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125 
‘‘(3) A list and explanation of lending practices, 
including those prohibited by the Truth in Lending 
Act or other applicable Federal law, and of other un-
fair practices and unreasonable or unnecessary 
charges to be avoided by the prospective buyer with 
respect to a real estate settlement. 
‘‘(4) A list and explanation of questions a con-
sumer obtaining a federally related mortgage loan 
should ask regarding the loan, including whether the 
consumer will have the ability to repay the loan, 
whether the consumer sufficiently shopped for the 
loan, whether the loan terms include prepayment pen-
alties or balloon payments, and whether the loan will 
benefit the borrower. 
‘‘(5) An explanation of the right of rescission as 
to certain transactions provided by sections 125 and 
129 of the Truth in Lending Act. 
‘‘(6) A brief explanation of the nature of a vari-
able rate mortgage and a reference to the booklet enti-
tled ‘Consumer Handbook on Adjustable Rate Mort-
gages’, published by the Board of Governors of the 
Federal 
Reserve 
System 
pursuant 
to 
section 
226.19(b)(1) of title 12, Code of Federal Regulations, 
or to any suitable substitute of such booklet that such 
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126 
Board of Governors may subsequently adopt pursuant 
to such section. 
‘‘(7) A brief explanation of the nature of a home 
equity line of credit and a reference to the pamphlet 
required to be provided under section 127A of the 
Truth in Lending Act. 
‘‘(8) Information about homeownership coun-
seling services made available pursuant to section 
106(a)(4) of the Housing and Urban Development Act 
of 1968 (12 U.S.C. 1701x(a)(4)), a recommendation 
that the consumer use such services, and notification 
that a list of certified providers of homeownership 
counseling in the area, and their contact information, 
is available. 
‘‘(9) An explanation of the nature and purpose 
of escrow accounts when used in connection with 
loans secured by residential real estate and the re-
quirements under section 10 of this Act regarding 
such accounts. 
‘‘(10) An explanation of the choices available to 
buyers of residential real estate in selecting persons to 
provide necessary services incidental to a real estate 
settlement. 
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127 
‘‘(11) An explanation of a consumer’s respon-
sibilities, liabilities, and obligations in a mortgage 
transaction. 
‘‘(12) An explanation of the nature and purpose 
of real estate appraisals, including the difference be-
tween an appraisal and a home inspection. 
‘‘(13) Notice that the Office of Housing of the 
Department of Housing and Urban Development has 
made publicly available a brochure regarding loan 
fraud and a World Wide Web address and toll-free 
telephone number for obtaining the brochure. 
The booklet prepared pursuant to this section shall take into 
consideration differences in real estate settlement procedures 
that may exist among the several States and territories of 
the United States and among separate political subdivi-
sions within the same State and territory.’’; 
(3) in subsection (c), by inserting at the end the 
following new sentence: ‘‘Each lender shall also in-
clude with the booklet a reasonably complete or up-
dated list of homeownership counselors who are cer-
tified pursuant to section 106(e) of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701x(e)) 
and located in the area of the lender.’’; and 
(4) in subsection (d), by inserting after the pe-
riod at the end of the first sentence the following: 
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128 
‘‘The lender shall provide the HUD-issued booklet in 
the version that is most appropriate for the person re-
ceiving it.’’. 
TITLE 
V—MORTGAGE 
DISCLO-
SURES UNDER REAL ESTATE 
SETTLEMENT 
PROCEDURES 
ACT OF 1974 
SEC. 501. UNIVERSAL MORTGAGE DISCLOSURE IN GOOD 
FAITH ESTIMATE OF SETTLEMENT SERVICES 
COSTS. 
(a) IN GENERAL.—Section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604) is amend-
ed— 
(1) in subsection (c), by adding after the period 
at the end the following: ‘‘Each such good faith esti-
mate shall include the disclosure required under sub-
section (f) in the form prescribed by the Secretary 
pursuant to such subsection, except that if the Sec-
retary at any time issues any regulations requiring 
the use of a standard or uniform form or statement 
in providing the good faith estimate required under 
this subsection and prescribing such standard or uni-
form form or statement, such disclosure shall not be 
required after the effective date of such regulations.’’; 
and 
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132 
the first such statement and the last two such 
statements appearing in a separate column, and 
each of the last two such statements preceded by 
a checkbox. 
‘‘(I) ‘Your Total Estimated Settlement 
Charges Will be $llll (a)’ and ‘Your Total 
Estimated Down Payment will be $llll 
(b)’, each statement appearing in a separate col-
umn. 
‘‘(J) ‘Your Total Estimated Cash Needed at 
Closing Will Be’ and ‘$llll (a+b)’, each 
statement appearing in a separate column. 
‘‘(K) ‘This represents a simple summary of 
Your Good Faith Estimate (GFE). To under-
stand the terms of Your loan, You must see dis-
closure forms and the Truth in Lending Act.’, 
such statement appearing directly below the en-
tirety of the remainder of the disclosure. 
‘‘(2) STANDARD FORM.— 
‘‘(A) DEVELOPMENT
AND
USE.—The Sec-
retary, in consultation with the Secretary of Vet-
erans Affairs, the Federal Deposit Insurance 
Corporation, and the Director of the Office of 
Thrift Supervision, shall develop and prescribe a 
standard form for the disclosure required under 
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133 
this subsection, which shall be used without vari-
ation in all transactions in the United States 
that involve federally related mortgage loans. 
‘‘(B) APPEARANCE.—The standard form de-
veloped pursuant to this paragraph shall— 
‘‘(i) set forth each statement required 
under a separate subparagraph under para-
graph (1) on a separate row of the disclo-
sure; 
‘‘(ii) be set forth in 8-point type; 
‘‘(iii) be not more than 6 inches in 
width or 3.5 inches in height; 
‘‘(iv) include such boldface type and 
shading as the Secretary considers appro-
priate; 
‘‘(v) include such parenthetical state-
ments directing the borrower to the terms of 
the loan (such as ‘see terms’) as the Sec-
retary considers appropriate, in such places 
as the Secretary considers appropriate; and 
‘‘(vi) be located in the upper one-third 
of the first page of the good faith estimate 
required under subsection (c) in a manner 
that allows the identity, address, phone 
number, and other relevant information of 
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134 
the lender, the identity, address, phone 
number, and other relevant information of 
the borrower, and the address of the prop-
erty for which the federally related mortgage 
loan is to be made, to be located above the 
standard form.’’. 
(b) REGULATIONS.—The Secretary of Housing and 
Urban Development shall issue regulations prescribing the 
standard form and the use of such form, as required by the 
amendment made by subsection (a), not later than the expi-
ration of the 180-day period beginning upon the date of 
the enactment of this Act, and such regulations shall take 
effect upon issuance. 
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Union Calendar No. 272 
110TH CONGRESS 
1ST SESSION 
H. R. 3915 
[Report No. 110–441] 
A BILL 
To amend the Truth in Lending Act to reform con-
sumer mortgage practices and provide account-
ability for such practices, to establish licensing 
and registration requirements for residential 
mortgage originators, to provide certain min-
imum standards for consumer mortgage loans, 
and for other purposes. 
NOVEMBER 9, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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