Source: https://casetext.com/statute/united-states-code/title-15-commerce-and-trade/chapter-41-consumer-credit-protection/subchapter-i-consumer-credit-cost-disclosure/part-b-credit-transactions/section-1638-transactions-other-than-under-an-open-end-credit-plan
Timestamp: 2020-04-09 21:07:36
Document Index: 771066855

Matched Legal Cases: ['§ 1638', '§ 1638', '§128', '§614', '§21052105', '§1302', '§2502', '§1021', '§130', '§1100', '§1419', '§2601', '§1070', '§1100', '§1419', '§1465', '§1420', '§2502', '§130', '§2502', '§2502', '§2502', '§2502', '§130', '§2502', '§1302', '§1302', '§614', '§614', '§614', '§130', '§10031003', '§2502', '§10021002']

Section 1638 - Transactions other than under an open end credit plan, 15 U.S.C. § 1638 | Casetext Search + Citator
Title 15 - COMMERCE AND TRADEChapter 41 - CONSUMER CREDIT PROTECTIONSubchapter I - CONSUMER CREDIT COST DISCLOSURE
15 U.S.C. § 1638
(A) The "amount financed", using that term, which shall be the amount of credit of which the consumer has actual use. This amount shall be computed as follows, but the computations need not be disclosed and shall not be disclosed with the disclosures conspicuously segregated in accordance with subsection (b)(1):
(15) In the case of a consumer credit transaction that is secured by the principal dwelling of the consumer, in which the extension of credit may exceed the fair market value of the dwelling, a clear and conspicuous statement that-
(16) In the case of a variable rate residential mortgage loan for which an escrow or impound account will be established for the payment of all applicable taxes, insurance, and assessments-
(A) Except as provided in subparagraph (G), in the case of any extension of credit that is secured by the dwelling of a consumer, which is also subject to the Real Estate Settlement Procedures Act [ 12 U.S.C. 2601 et seq.], good faith estimates of the disclosures required under subsection (a) shall be made in accordance with regulations of the Bureau under section 1631(c) of this title and shall be delivered or placed in the mail not later than three business days after the creditor receives the consumer's written application, which shall be at least 7 business days before consummation of the transaction.
(B) In the case of an extension of credit that is secured by the dwelling of a consumer, the disclosures provided under subparagraph (A),1 shall be in addition to the other disclosures required by subsection (a), and shall-
(F) WAIVER OF TIMELINESS OF DISCLOSURES.-To expedite consummation of a transaction, if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may waive or modify the timing requirements for disclosures under subparagraph (A), provided that-
(i) In the case of an extension of credit relating to a plan described in section 101(53D) of title 11-
(4) REPAYMENT ANALYSIS REQUIRED TO INCLUDE ESCROW PAYMENTS.-
(A) IN GENERAL.-In the case of any consumer credit transaction secured by a first mortgage or lien on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, for which an impound, trust, or other type of account has been or will be established in connection with the transaction for the payment of property taxes, hazard and flood (if any) insurance premiums, or other periodic payments or premiums with respect to the property, the information required to be provided under subsection (a) with respect to the number, amount, and due dates or period of payments scheduled to repay the total of payments shall take into account the amount of any monthly payment to such account for each such repayment in accordance with section 10(a)(2) of the Real Estate Settlement Procedures Act of 1974 [ 12 U.S.C. 2609(a)(2) ].
(B) ASSESSMENT VALUE.-The amount taken into account under subparagraph (A) for the payment of property taxes, hazard and flood (if any) insurance premiums, or other periodic payments or premiums with respect to the property shall reflect the taxable assessed value of the real property securing the transaction after the consummation of the transaction, including the value of any improvements on the property or to be constructed on the property (whether or not such construction will be financed from the proceeds of the transaction), if known, and the replacement costs of the property for hazard insurance, in the initial year after the transaction.
In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously-
(K) an example of the total cost of the private education loan over the life of the loan-
(M) that the borrower may qualify for Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source;
(N) the interest rates available with respect to such Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.);
(O) that, as provided in paragraph (6)-
Contemporaneously with the approval of a private education loan application, and before the loan transaction is consummated, the private educational lender shall disclose to the borrower, clearly and conspicuously-
(L) that, as provided in paragraph (6)-
(M) that the borrower-
(i) may qualify for Federal financial assistance through a program under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source; and
(N) the interest rates available with respect to such Federal financial assistance through a program under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.);
Before a private educational lender may consummate a private education loan with respect to a student attending an institution of higher education, the lender shall obtain from the applicant for the private education loan the form developed by the Secretary of Education under section 155 of the Higher Education Act of 1965 [ 20 U.S.C. 1019d ], signed by the applicant, in written or electronic form.
Contemporaneously with the consummation of a private education loan, a private educational lender shall make to the borrower each of the disclosures described in-
Model forms developed under this paragraph shall-
Except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender prior to the earlier of-
Each private educational lender that has a preferred lender arrangement with a covered educational institution shall annually, by a date determined by the Bureau, in consultation with the Secretary of Education, provide to the covered educational institution such information as the Bureau determines to include in the model form developed under paragraph (5) for each type of private education loan that the lender plans to offer to students attending the covered educational institution, or to the families of such students, for the next award year (as that term is defined in section 481 of the Higher Education Act of 1965 [ 20 U.S.C. 1088 ]).
(G) The names, addresses, telephone numbers, and Internet addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as defined in section 1441a-1 of title 12).
Pub. L. 90-321, title I, §128, May 29, 1968, 82 Stat. 155; Pub. L. 96-221, title VI, §614(a)-(c), Mar. 31, 1980, 94 Stat. 178, 179; Pub. L. 104-208, div. A, title II, §21052105,, 110 Stat. 3009-402; Pub. L. 109-8, title XIII, §1302(b)(1), Apr. 20, 2005, 119 Stat. 208; Pub. L. 110-289, div. B, title V, §2502(a), July 30, 2008, 122 Stat. 2855; Pub. L. 110-315, title X, §1021(a), Aug. 14, 2008, 122 Stat. 3483; Pub. L. 110-343, div. A, title I, §130(a), Oct. 3, 2008, 122 Stat. 3797; Pub. L. 111-203, title X, §1100A(2), title XIV, §§1419, 1420, 1465, July 21, 2010, 124 Stat. 2107, 2154, 2155, 2185.
REFERENCES IN TEXTThe Real Estate Settlement Procedures Act, referred to in subsec. (b)(2)(A), probably refers to the Real Estate Settlement Procedures Act of 1974, Pub. L. 93-533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§2601 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 2601 of Title 12 and Tables.The Higher Education Act of 1965, referred to in subsec. (e)(1)(M), (N), (2)(M)(i), (N), is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§1070 et seq.) of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.
AMENDMENTS 2010- Pub. L. 111-203, §1100A(2), substituted "Bureau" for "Board" wherever appearing.Subsec. (a)(16) to (19). Pub. L. 111-203, §1419, added pars. (16) to (19).Subsec. (b)(4). Pub. L. 111-203, §1465, added par. (4).Subsec. (f). Pub. L. 111-203, §1420, added subsec. (f). 2008-Subsec. (b)(2). Pub. L. 110-289, §2502(a)(1), designated existing provisions as subpar. (A).Subsec. (b)(2)(A). Pub. L. 110-343, §130(a)(1), substituted "Except as provided in subparagraph (G), in the case" for "In the case". Pub. L. 110-289, §2502(a)(5), (6), struck out ", whichever is earlier" after "consummation of the transaction" and "If the disclosure statement furnished within three days of the written application contains an annual percentage rate which is subsequently rendered inaccurate within the meaning of section 1606(c) of this title, the creditor shall furnish another statement at the time of settlement or consummation." at the end. Pub. L. 110-289, §2502(a)(4), which directed insertion of ", which shall be at least 7 business days before consummation of the transaction" after "written application", was executed by making the insertion after "written application" the first place appearing. Pub. L. 110-289, §2502(a)(2), (3), substituted "any extension of credit that is secured by the dwelling of a consumer" for "a residential mortgage transaction, as defined in section 1602(w) of this title" and "and" for "before the credit is extended, or".Subsec. (b)(2)(B) to (F). Pub. L. 110-289, §2502(a)(6), added subpars. (B) to (F).Subsec. (b)(2)(G). Pub. L. 110-343, §130(a)(2), amended subpar. (G) generally. Prior to amendment, subpar. (G) read as follows: "The requirements of subparagraphs (B), (C), (D) and (E) shall not apply to extensions of credit relating to plans described in section 101(53D) of title 11." Pub. L. 110-289, §2502(a)(6), added subpar. (G). Subsec. (e). Pub. L. 110-315 added subsec. (e). 2005-Subsec. (a)(15). Pub. L. 109-8, §1302(b)(1)(A), added par. (15).Subsec. (b)(3). Pub. L. 109-8, §1302(b)(1)(B), added par. (3). 1996-Subsec. (a)(14). Pub. L. 104-208 added par. (14).1980-Subsec. (a). Pub. L. 96-221, §614(a), substituted provisions setting forth required disclosures by the creditor for transactions other than under an open end credit plan, for provisions setting forth required disclosures by the creditor for sales not under open end credit plans.Subsec. (b). Pub. L. 96-221, §614(b), designated existing provisions as par. (1), inserted provisions relating to the conspicuous segregation of required disclosures, and struck out provisions authorizing the required information to be disclosed in the signed evidence of indebtedness, and added par. (2).Subsec. (c). Pub. L. 96-221, §614(c), designated existing provisions as par. (1), substituted "total sale" for "deferred payment", and added par. (2).
EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 1100A(2) of Pub. L. 111-203 effective 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 sections 1419, 1420, and 1465 of Pub. L. 111-203 effective on the date on which final regulations implementing 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 this title.
EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110-343, div. A, title I, §130(b), Oct. 3, 2008, 122 Stat. 3797, provided that: "The amendments made by subsection (a) [amending this section] shall take effect as if included in the amendments made by section 2502 of the Mortgage Disclosure Improvement Act of 2008 ( Public Law 110-289) [amending this section and section 1640 of this title]." Pub. L. 110-315, title X, §10031003,, 122 Stat. 3478, provided that:"(a) IN GENERAL.-Except as provided in subsection (b) and as otherwise provided in this title [see Short Title of 2008 Amendment note set out under section 1601 of this title], this title and the amendments made by this title shall become effective on the date of enactment of this Act [Aug. 14, 2008]."(b) EFFECT NOTWITHSTANDING REGULATIONS.-Paragraphs (1), (2), (3), (4), (6), (7), and (8) of section 128(e) [ 15 U.S.C. 1638(e) ] and section 140(c) of the Truth in Lending Act [ 15 U.S.C. 1650(c) ], as added by this title, shall become effective on the earlier of the date on which regulations issued under section 1002 [set out as a note below] become effective [Such regulations were issued effective Sept. 14, 2009, with compliance optional until Feb. 14, 2010. See 74 F.R. 41194.] or 18 months after the date of enactment of this Act [Aug. 14, 2008]." Pub. L. 110-289, div. B, title V, §2502(c), July 30, 2008, 122 Stat. 2857, provided that:"(1) GENERAL DISCLOSURES.-Except as provided in paragraph (2), the amendments made by subsection (a) [amending this section] shall become effective 12 months after the date of enactment of this Act [July 30, 2008]."(2) VARIABLE INTEREST RATES.-Subparagraph (C) of section 128(b)(2) of the Truth in Lending Act ( 15 U.S.C. 1638(b)(2)(C) ), as added by subsection (a) of this section, shall become effective on the earlier of-"(A) the compliance date established by the Board for such purpose, by regulation; or"(B) 30 months after the date of enactment of this Act [July 30, 2008]."
EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109-8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109-8 set out as a note under section 101 of Title 11.
EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96-221 set out as a note under section 1602 of this title.
REGULATIONS Pub. L. 110-315, title X, §10021002,, 122 Stat. 3478, provided that: "Not later than 365 days after the date of enactment of this Act [Aug. 14, 2008], the Board of Governors of the Federal Reserve System shall issue regulations in final form to implement paragraphs (1), (2), (3), (4), (6), (7), and (8) of section 128(e) [ 15 U.S.C. 1638(e) ] and section 140(c) of the Truth in Lending Act [ 15 U.S.C. 1650(c) ], as added by this title, which regulations shall become effective not later than 6 months after their date of issuance."
Section 1637a - Disclosure requirements for open end consumer credit plans secured by consumer's principal dwelling
Section 1638a - Reset of hybrid adjustable rate mortgages