Source: https://www.law.cornell.edu/uscode/text/12/2604
Timestamp: 2016-02-09 07:43:58
Document Index: 269351858

Matched Legal Cases: ['§ 2604', '§ 2604', '§ 2604', '§\u202f5', '§\u202f4', '§\u202f951', '§\u202f1098', '§\u202f1450', '§\u202f100222', '§\u202f13', '§\u202f1601', '§\u202f1450', '§\u202f1098', '§\u202f1450', '§\u202f1098', '§\u202f1450', '§\u202f1450', '§\u202f1450']

12 U.S. Code § 2604 - Home buying information booklets | US Law | LII / Legal Information Institute
U.S. Code › Title 12 › Chapter 27 › § 2604 12 U.S. Code § 2604 - Home buying information booklets
Home buying information booklets
(b) ContentsEach booklet shall be in such form and detail as the Director shall prescribe and, in addition to such other information as the Director may provide, shall include in plain and understandable language the following information:
the advantages of prepayment; and
the trade-off between closing costs and the interest rate over the life of the loan.
An explanation and sample of the uniform settlement statement required by section 2603 of this title.
A list and explanation of lending practices, including those prohibited by the Truth in Lending Act or other applicable Federal law, and of other unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement.
A list and explanation of questions a consumer 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 penalties or balloon payments, and whether the loan will benefit the borrower.
An explanation of the right of rescission as to certain transactions provided by sections 125 and 129 of the Truth in Lending Act [15 U.S.C. 1635, 1639].
A brief explanation of the nature of a variable rate mortgage and a reference to the booklet entitled “Consumer Handbook on Adjustable Rate Mortgages”, published by the Director, or to any suitable substitute of such booklet that the Director may subsequently adopt pursuant to such section.
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 [15 U.S.C. 1637a].
Information about homeownership counseling services made available pursuant to section 1701x(a)(4) of this title, 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.
An explanation of the nature and purpose of escrow accounts when used in connection with loans secured by residential real estate and the requirements under section 2609 of this title regarding such accounts.
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.
An explanation of a consumer’s responsibilities, liabilities, and obligations in a mortgage transaction.
An explanation of the nature and purpose of real estate appraisals, including the difference between an appraisal and a home inspection.
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.
An explanation of flood insurance and the availability of flood insurance under the National Flood Insurance Program or from a private insurance company, whether or not the real estate is located in an area having special flood hazards, and the following statement: “Although you may not be required to maintain flood insurance on all structures, you may still wish to do so, and your mortgage lender may still require you to do so to protect the collateral securing the mortgage. If you choose to not maintain flood insurance on a structure, and it floods, you are responsible for all flood losses relating to that structure.”.
(Pub. L. 93–533, § 5, Dec. 22, 1974, 88 Stat. 1725; Pub. L. 94–205, § 4, Jan. 2, 1976, 89 Stat. 1158; Pub. L. 102–550, title IX, § 951, Oct. 28, 1992, 106 Stat. 3892; Pub. L. 111–203, title X, § 1098(3), title XIV, § 1450, July 21, 2010, 124 Stat. 2104, 2174; Pub. L. 112–141, div. F, title II, § 100222, July 6, 2012, 126 Stat. 934; Pub. L. 113–89, § 13(b), Mar. 21, 2014, 128 Stat. 1026.)
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 intent of Congress, because Pub. L. 93–533 does not contain titles.
The Truth in Lending Act, referred to in subsec. (b)(3), 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. Two sections 129 of the Act have been enacted and are classified to sections 1639 and 1639a of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables.
2014—Subsec. (b)(14). Pub. L. 113–89 inserted before period at end “, and the following statement: ‘Although you may not be required to maintain flood insurance on all structures, you may still wish to do so, and your mortgage lender may still require you to do so to protect the collateral securing the mortgage. If you choose to not maintain flood insurance on a structure, and it floods, you are responsible for all flood losses relating to that structure.’ ” and transferred par. (14) to appear after par. (13).
2010—Pub. L. 111–203, § 1450(1), substituted “Home buying” for “Special” in section catchline.
Pub. L. 111–203, § 1098(3)(A), substituted “Bureau” for “Secretary” wherever appearing.
Subsec. (a). Pub. L. 111–203, § 1450(2), added subsec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: “The Bureau shall prepare and distribute booklets jointly addressing compliance with the requirements of the Truth in Lending Act and the provisions of this chapter, in order to help persons borrowing money to finance the purchase of residential real estate better to understand the nature and costs of real estate settlement services. The Bureau shall distribute such booklets to all lenders which make federally related mortgage loans.”
Pub. L. 111–203, § 1098(3)(B), substituted “The Bureau shall prepare and distribute booklets jointly addressing compliance with the requirements of the Truth in Lending Act and the provisions of this chapter, in order to help persons borrowing money to finance the purchase of residential real estate better to understand the nature and costs of real estate settlement services.” for “The Secretary shall prepare and distribute booklets to help persons borrowing money to finance the purchase of residential real estate better to understand the nature and costs of real estate settlement services.”
Subsec. (b). Pub. L. 111–203, § 1450(2), added subsec. (b) and struck out former subsec. (b) which related to form and detail, cost elements, standard settlement form, escrow accounts, selection of persons for settlement services; and consideration of differences in settlement procedures.
Subsec. (c). Pub. L. 111–203, § 1450(3), inserted at end “Each lender shall also include with the booklet a reasonably complete or updated list of homeownership counselors who are certified pursuant to section 1701x(e) of this title and located in the area of the lender.”
Subsec. (d). Pub. L. 111–203, § 1450(4), inserted “The lender shall provide the booklet in the version that is most appropriate for the person receiving it.” after the first sentence.
1992—Subsec. (d). Pub. L. 102–550 substituted “Such booklet shall be provided by delivering it or placing it in the mail not later than 3 business days after the lender receives the application, but no booklet need be provided if the lender denies the application for credit before the end of the 3-day period.” for “Such booklet shall be provided at the time of receipt or preparation of such application.”
1976—Subsecs. (c) to (e). Pub. L. 94–205 added subsec. (c), redesignated former subsec. (c) as (d), substituted “or for whom it prepares a written application” for “an application” and inserted “or preparation” after “receipt”, and redesignated former subsec. (d) as (e).