‘‘(c) CONTENTS.—With respect to a federally related 
mortgage loan, the standard written forms required under 
this subsection are as follows: 
‘‘(1) STATEMENT OF LOAN TERMS.—A single 
page, written disclosure regarding the federally re-
lated mortgage loan that, when completed by the 
lender or mortgage broker, or both, sets forth, in ac-
cordance with such requirements as the Secretary 
shall by regulation establish— 
‘‘(A) a best possible estimate of— 
‘‘(i) the total loan amount under the 
federally related mortgage loan; 
‘‘(ii) the loan-to-value ratio for the 
loan; 
‘‘(iii) the final maturity date for the 
loan; 
‘‘(iv) the amount and due date for any 
balloon payment under the loan; 
‘‘(v) the amount of any prepayment 
fee to be charged if the loan is paid in full 
before the final maturity date for the loan; 
‘‘(vi) the initial interest rate under the 
loan expressed as an annual percentage 
rate, and the amount of the monthly pay-
ment due under such rate; 
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‘‘(vii) the duration during which such 
initial interest rate will be charged; 
‘‘(viii) the fully indexed rate of inter-
est under the loan expressed as an annual 
percentage rate and the amount of the 
monthly payment due under such rate; 
‘‘(ix) the maximum possible rate of in-
terest under the loan expressed as an an-
nual percentage rate and the amount of 
the monthly payment due under such rate; 
‘‘(x) the monthly household income of 
the borrower upon which the loan is based; 
‘‘(xi) the amount of initial monthly 
payment due under the loan, and the 
amount of such initial monthly payment 
plus monthly amounts due for taxes and 
insurance on the property for which the 
loan is made, both expressed as a percent-
age of the monthly household income of 
the borrower; 
‘‘(xii) the amount of the fully indexed 
monthly payment due under the loan, and 
the amount of such fully indexed monthly 
payment plus monthly amounts due for 
taxes and insurance on the property for 
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which the loan is made, both expressed as 
a percentage of the monthly household in-
come of the borrower; 
‘‘(xiii) the aggregate amount of settle-
ment charges for all settlement services 
provided in connection with the loan, the 
amount of such charges that are included 
in the loan amount and the amount of 
such charges the borrower must pay at 
closing, the aggregate amount of lender’s 
fees connection with the loan, and the ag-
gregate amount of other fees or required 
payments in connection with the loan; and 
‘‘(xiv) the aggregate amount of fees 
paid to the mortgage broker in connection 
with the loan, the amount of such fees paid 
directly by the borrower, and any addi-
tional amount received by the broker from 
the lender based on the interest rate of the 
loan (commonly referred to as a yield 
spread premium); 
‘‘(B) a name, telephone number, and elec-
tronic mail address that may be used by the 
borrower to obtain information regarding the 
loan; and 
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‘‘(C) a prominent statement that the 
amounts to be provided by the lender or mort-
gage broker, or both, under the federally related 
mortgage loan shall be subject to final under-
writing of the loan. 
‘‘(2) STATEMENT OF DEFINITIONS AND EXPLA-
NATIONS.—A two-page written disclosure that sets 
forth, in accordance with such requirements as the 
Secretary shall, by regulation, establish, basic easy- 
to-understand definitions or explanations, of terms 
relating to residential mortgage loans, including each 
of the following terms: appraised value, types of 
loans, initial interest rate, fully indexed rate of inter-
est, maximum possible rate of interest, monthly 
household income, monthly loan payment including 
taxes and insurance, fully indexed housing expense 
ratio, prepayment fee, balloon payment, payment op-
tion loan, points, closing costs, settlement services, 
settlement charges, lender’s fees, and mortgage 
broker. 
‘‘(d) SAVINGS CLAUSE.—Notwithstanding disclosure 
pursuant to subsection (c)(1)(A) of best possible estimates 
of the information required under such subsection with re-
spect to a federally related mortgage loan, the amounts 
to be provided by the lender or mortgage broker, or both, 
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under the loan shall be subject to final underwriting of 
the loan.’’. 
Æ 
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