SEC. 2. ESCROW ACCOUNTS REQUIRED FOR SUBPRIME 
LOANS. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 129 the following new section: 
‘‘§ 129A. Escrow or impound accounts relating to cer-
tain consumer credit transactions 
‘‘(a) IN GENERAL.—A creditor, in connection with 
the formation or consummation of a subprime mortgage, 
shall establish, at the time of the consummation of such 
mortgage, an escrow or impound account for the payment 
of taxes and hazard insurance as provided in, and in ac-
cordance with, this section, unless such an account already 
exists. 
‘‘(b) DURATION
OF ESCROW
OR IMPOUND AC-
COUNT.—An escrow or impound account established pur-
suant to this section, shall remain in existence for as long 
as the subprime mortgage is outstanding. 
‘‘(c) ADMINISTRATION OF ESCROW OR IMPOUND AC-
COUNTS.—Except as may otherwise be provided for in this 
title or in regulations prescribed by the Board, escrow or 
impound accounts established pursuant to this section 
shall be established in an insured depository institution. 
‘‘(d) DISCLOSURES RELATING TO ESCROW OR IM-
POUND ACCOUNT.— 
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‘‘(1) IN
GENERAL.—In the case of any im-
pound, trust, or escrow account that is subject to 
this section, the creditor shall disclose by written no-
tice to the consumer within 3 business days before 
the consummation of the consumer credit trans-
action giving rise to such account the following in-
formation: 
‘‘(A) The fact that an escrow or impound 
account will be established at consummation of 
the transaction. 
‘‘(B) The amount required at closing to 
initially fund the escrow or impound account. 
‘‘(C) The amount in the initial year of the 
estimated taxes and hazard insurance pre-
miums. 
‘‘(D) The estimated monthly amount pay-
able for taxes and hazard insurance. 
‘‘(2) REGULATIONS.—The Board shall prescribe 
by regulation the contents of the notice required in 
paragraph (1) no later than 90 days after the date 
of the enactment of the Homebuyer’s Protection Act 
of 2007. 
‘‘(e) HAZARD INSURANCE DEFINED.—For purposes 
of this section, the term ‘hazard insurance’ shall have the 
same meaning as provided under the law of the State 
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where the real property securing the consumer credit 
transaction is located.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
by inserting after the item relating to section 129 the fol-
lowing new item: 
‘‘129A. Escrow or impound accounts relating to certain consumer credit trans-
actions.’’. 
SEC. 3. SCOPE OF APPRAISAL REQUIREMENTS. 
(a) IN GENERAL.—Title XI of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3331 et seq.) is amended by striking ‘‘federally re-
lated transaction’’ and ‘‘federally related transactions’’ 
each place each such term appears and inserting ‘‘real es-
tate related financial transaction’’ or ‘‘real estate related 
financial transactions’’, as the case may be. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) The heading of section 1120 of the Finan-
cial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3349) is amended by strik-
ing ‘‘FEDERALLY RELATED TRANSACTIONS’’ and 
inserting ‘‘REAL
ESTATE
RELATED
FINANCIAL 
TRANSACTIONS’’. 
(2) Section 1121 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 3350) is amended— 
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(A) by striking paragraph (4); and 
(B) in paragraph (5), by striking ‘‘any 
transaction involving’’ and inserting ‘‘any con-
sumer transaction involving’’. 
Æ 
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