12 USC 2501. Congressional findings and declaration of purpose
TITLE 12 -- BANKS AND BANKING
The Congress finds and declares that --
(1) the books and records of banking and financial organizations and
business associations engaged in issuing and selling money orders and
traveler's checks do not, as a matter of business practice, show the
last known addresses of purchasers of such instruments;
(2) a substantial majority of such purchasers reside in the States
where such instruments are purchased;
(3) the States wherein the purchasers of money orders and traveler's
checks reside should, as a matter of equity among the several States, be
entitled to the proceeds of such instruments in the event of
abandonment;
(4) it is a burden on interstate commerce that the proceeds of such
instruments are not being distributed to the States entitled thereto;
and
(5) the cost of maintaining and retrieving addresses of purchasers of
money orders and traveler's checks is an additional burden on interstate
commerce since it has been determined that most purchasers reside in the
State of purchase of such instruments.
(Pub. L. 93-495, title VI, 601, Oct. 28, 1974, 88 Stat. 1525.)
Section 604 of Pub. L. 93-495 provided that: ''This title (enacting
this chapter) shall be applicable to sums payable on money orders,
traveler's checks, and similar written instruments deemed abandoned on
or after February 1, 1965, except to the extent that such sums have been
paid over to a State prior to January 1, 1974.''
12 USC 2502. Definitions
TITLE 12 -- BANKS AND BANKING
As used in this chapter --
(1) ''banking organization'' means any bank, trust company, savings
bank, safe deposit company, or a private banker engaged in business in
the United States;
(2) ''business association'' means any corporation (other than a
public corporation), joint stock company, business trust, partnership,
or any association for business purposes of two or more individuals;
and
(3) ''financial organization'' means any savings and loan
association, building and loan association, credit union, or investment
company engaged in business in the United States.
(Pub. L. 93-495, title VI, 602, Oct. 28, 1974, 88 Stat. 1525.)
12 USC 2503. State entitlement to escheat or custody
TITLE 12 -- BANKS AND BANKING
Where any sum is payable on a money order, traveler's check, or other
similar written instrument (other than a third party bank check) on
which a banking or financial organization or a business association is
directly liable --
(1) if the books and records of such banking or financial
organization or business association show the State in which such money
order, traveler's check, or similar written instrument was purchased,
that State shall be entitled exclusively to escheat or take custody of
the sum payable on such instrument, to the extent of that State's power
under its own laws to escheat or take custody of such sum;
(2) if the books and records of such banking or financial
organization or business association do not show the State in which such
money order, traveler's check, or similar written instrument was
purchased, the State in which the banking or financial organization or
business association has its principal place of business shall be
entitled to escheat or take custody of the sum payable on such money
order, traveler's check, or similar written instrument, to the extent of
that State's power under its own laws to escheat or take custody of such
sum, until another State shall demonstrate by written evidence that it
is the State of purchase; or
(3) if the books and records of such banking or financial
organizations or business association show the State in which such money
order, traveler's check, or similar written instrument was purchased and
the laws of the State of purchase do not provide for the escheat or
custodial taking of the sum payable on such instrument, the State in
which the banking or financial organization or business association has
its principal place of business shall be entitled to escheat or take
custody of the sum payable on such money order, traveler's check, or
similar written instrument, to the extent of that State's power under
its own laws to escheat or take custody of such sum, subject to the
right of the State of purchase to recover such sum from the State of
principal place of business if and when the law of the State of purchase
makes provision for escheat or custodial taking of such sum.
(Pub. L. 93-495, title VI, 603, Oct. 28, 1974, 88 Stat. 1525.)
12 USC CHAPTER 27 -- REAL ESTATE SETTLEMENT PROCEDURES
TITLE 12 -- BANKS AND BANKING
Sec.
2601. Congressional findings and purpose.
2602. Definitions.
2603. Uniform settlement statement.
2604. Special information booklets.
(a) Distribution by Secretary to lenders to help borrowers.
(b) Form and detail; cost elements, standard settlement form, escrow
accounts, selection of persons for settlement services; consideration
of differences in settlement procedures.
(c) Estimate of charges.
(d) Distribution by lenders to loan applicants at time of receipt or
preparation of applications.
(e) Printing and distribution by lenders of booklets approved by
Secretary.
2605. Servicing of mortgage loans and administration of escrow
accounts.
(a) Disclosure to applicant relating to assignment, sale, or transfer
of loan servicing.
(b) Notice by transferor of loan servicing at time of transfer.
(c) Notice by transferee of loan servicing at time of transfer.
(d) Treatment of loan payments during transfer period.
(e) Duty of loan servicer to respond to borrower inquiries.
(f) Damages and costs.
(g) Administration of escrow accounts.
(h) Preemption of conflicting State laws.
(i) Definitions.
(j) Transition.
2606. Repealed.
2607. Prohibition against kickbacks and unearned fees.
(a) Business referrals.
(b) Splitting charges.
(c) Fees, salaries, compensation, or other payments.
(d) Penalties for violations; joint and several liability; treble
damages; actions for injunction by Secretary and by State officials;
costs and attorney fees; construction of State laws.
2608. Title companies; liability of seller.
2609. Limitation on requirement of advance deposits in escrow
accounts.
(a) In general.
(b) Notification of shortage in escrow account.
(c) Escrow account statements.
(d) Penalties.
2610. Prohibition of fees for preparation of truth-in-lending,
uniform settlement, and escrow account statements.
2611. Land parcel recordation system; establishment on
demonstration basis.
2612. Report of Secretary on necessity for further Congressional
action.
(a) Administrative consultations; study, investigation, and
hearings; time of submission.
(b) Scope of report; specific practices or problems and corrective
measures; cost burden for real estate settlement services; Federal
regulation of charges and regulatory scheme; local government
recordation of land title information and Federal assistance for
development of a model system.
2613. Demonstration to determine feasibility of including statements
of settlement costs in special information booklets; report to
Congress.
2614. Jurisdiction of courts; limitations.
2615. Contracts and liens; validity.
2616. State laws unaffected; inconsistent Federal and State
provisions.
2617. Authority of Secretary.
42 sections 3541, 8232.
12 USC 2601. Congressional findings and purpose
TITLE 12 -- BANKS AND BANKING
(a) The Congress finds that significant reforms in the real estate
settlement process are needed to insure that consumers throughout the
Nation are provided with greater and more timely information on the
nature and costs of the settlement process and are protected from
unnecessarily high settlement charges caused by certain abusive
practices that have developed in some areas of the country. The
Congress also finds that it has been over two years since the Secretary
of Housing and Urban Development and the Administrator of Veterans'
Affairs submitted their joint report to the Congress on ''Mortgage
Settlement Costs'' and that the time has come for the recommendations
for Federal legislative action made in that report to be implemented.
(b) It is the purpose of this chapter to effect certain changes in
the settlement process for residential real estate that will result --
(1) in more effective advance disclosure to home buyers and sellers
of settlement costs;
(2) in the elimination of kickbacks or referral fees that tend to
increase unnecessarily the costs of certain settlement services;
(3) in a reduction in the amounts home buyers are required to place
in escrow accounts established to insure the payment of real estate
taxes and insurance; and
(4) in significant reform and modernization of local recordkeeping of
land title information.
(Pub. L. 93-533, 2, Dec. 22, 1974, 88 Stat. 1724.)
This chapter, referred to in subsec. (b), was in the original ''this
Act'', meaning Pub. L. 93-533, Dec. 22, 1974, 88 Stat. 1724, as
amended, known as the Real Estate Settlement Procedures Act of 1974,
which is classified principally to this chapter ( 2601 et seq.). For
complete classification of this Act to the Code, see Short Title note
set out below and Tables.
Reference to Administrator of Veterans' Affairs deemed to refer to
Secretary of Veterans Affairs pursuant to section 10 of Pub. L.
100-527, set out as a Department of Veterans Affairs Act note under
section 301 of Title 38, Veterans' Benefits.
Section 20, formerly 19, of Pub. L. 93-533, as renumbered by Pub.
L. 94-205, 10, Jan. 2, 1976, 89 Stat. 1159, provided that: ''The
provisions of this Act, and the amendments made thereby (see Short Title
note set out below), shall become effective one hundred and eighty days
after the date of the enactment of this Act (Dec. 22, 1974).''
Section 1 of Pub. L. 94-205, Jan. 2, 1976, 89 Stat. 1157,
provided: ''That this Act (enacting section 2617 of this title,
amending sections 2602, 2603, 2604, 2607, 2609 and 2616 of this title
and section 1631 of Title 15, Commerce and Trade, repealing sections
2605 and 2606 of this title, enacting provisions set out as a note under
section 2602 of this title and amending provisions set out as a note
under this section) may be cited as the 'Real Estate Settlement
Procedures Act Amendments of 1975'.''
Section 1 of Pub. L. 93-533 provided that: ''This Act (enacting
this chapter and sections 1730f and 1831b of this title and provisions
set out as notes under sections 1730f and 2601 of this title) may be
cited as the 'Real Estate Settlement Procedures Act of 1974'.''
12 USC 2602. Definitions
TITLE 12 -- BANKS AND BANKING
For purposes of this chapter --
(1) the term ''federally related mortgage loan'' includes any loan
(other than temporary financing such as a construction loan) which --
(A) is secured by a first lien on residential real property
(including individual units of condominiums and cooperatives) designed
principally for the occupancy of from one to four families; and
(B)(i) is made in whole or in part by any lender the deposits or
accounts of which are insured by any agency of the Federal Government,
or is made in whole or in part by any lender which is regulated by any
agency of the Federal Government, or
(ii) is made in whole or in part, or insured, guaranteed,
supplemented, or assisted in any way, by the Secretary or any other
officer or agency of the Federal Government or under or in connection
with a housing or urban development program administered by the
Secretary or a housing or related program administered by any other such
officer or agency; or
(iii) is intended to be sold by the originating lender to the Federal
National Mortgage Association, the Government National Mortgage
Association, the Federal Home Loan Mortgage Corporation, or a financial
institution from which it is to be purchased by the Federal Home Loan
Mortgage Corporation; or
(iv) is made in whole or in part by any ''creditor'', as defined in
section 1602(f) of title 15, who makes or invests in residential real
estate loans aggregating more than $1,000,000 per year, except that for
the purpose of this chapter, the term ''creditor'' does not include any
agency or instrumentality of any State;
(2) the term ''thing of value'' includes any payment, advance, funds,
loan, service, or other consideration;
(3) the term ''Settlement services'' includes any service provided in
connection with a real estate settlement including, but not limited to,
the following: title searches, title examinations, the provision of
title certificates, title insurance, services rendered by an attorney,
the preparation of documents, property surveys, the rendering of credit
reports or appraisals, pest and fungus inspections, services rendered by
a real estate agent or broker, and the handling of the processing, and
closing or settlement;
(4) the term ''title company'' means any institution which is
qualified to issue title insurance, directly or through its agents, and
also refers to any duly authorized agent of a title company;
(5) the term ''person'' includes individuals, corporations,
associations, partnerships, and trusts;
(6) the term ''Secretary'' means the Secretary of Housing and Urban
Development;
(7) the term ''controlled business arrangement'' means an arrangement
in which (A) a person who is in a position to refer business incident to
or a part of a real estate settlement service involving a federally
related mortgage loan, or an associate of such person, has either an
affiliate relationship with or a direct or beneficial ownership interest
of more than 1 percent in a provider of settlement services; and (B)
either of such persons directly or indirectly refers such business to
that provider or affirmatively influences the selection of that
provider; and
(8) the term ''associate'' means one who has one or more of the
following relationships with a person in a position to refer settlement
business: (A) a spouse, parent, or child of such person; (B) a
corporation or business entity that controls, is controlled by, or is
under common control with such person; (C) an employer, officer,
director, partner, franchisor, or franchisee of such person; or (D)
anyone who has an agreement, arrangement, or understanding, with such
person, the purpose or substantial effect of which is to enable the
person in a position to refer settlement business to benefit financially
from the referrals of such business.
(Pub. L. 93-533, 3, Dec. 22, 1974, 88 Stat. 1724; Pub. L. 94-205, 2,
Jan. 2, 1976, 89 Stat. 1157; Pub. L. 98-181, title IV, 461(a), Nov. 30,
1983, 97 Stat. 1230.)
1983 -- Pars. (7), (8). Pub. L. 98-181 added pars. (7) and (8).
1976 -- Par. (1). Pub. L. 94-205, 2(1), inserted ''(other than
temporary financing such as a construction loan)'' in introductory text.
Par. (1)(A). Pub. L. 94-205, 2(2), inserted ''a first lien on'' after
''is secured by''.
Par. (1)(B)(iii). Pub. L. 94-205, 2(3)-(5), substituted ''is intended
to be sold by the originating lender to'' for ''is eligible for purchase
by'' and ''a'' and ''is to'' for ''from any'' and ''could'',
respectively, and struck out ''or'' after ''the Government National
Mortgage Association''.
Par. (1)(B)(iv). Pub. L. 94-205, 2(6), inserted '', except that for
the purpose of this chapter, the term 'creditor' does not include any
agency or instrumentality of any State'' after ''more than $1,000,000
per year''.
Section 461(f) of Pub. L. 98-181 provided that: ''The amendments
made by this section (amending this section and sections 2607, 2614, and
2617 of this title) shall become effective on Janaury 1, 1984.''
Section 12 of Pub. L. 94-205 provided that: ''The provisions of
this Act and the amendments made hereby (enacting section 2617 of this
title, amending this section, sections 2603, 2604, 2607, 2609, and 2616
of this title, and section 1631 of Title 15, Commerce and Trade,
repealing sections 2605 and 2606 of this title, and enacting and
amending provisions set out as notes under section 2601 of this title)
shall become effective upon enactment (Jan. 2, 1976). The Secretary may
suspend for up to one hundred and eighty days from the date of enactment
of this Act (Jan. 2, 1976) any provision of section 4 and section 5 of
the Real Estate Settlement Procedures Act of 1974 (sections 2603 and
2604 of this title), as amended by this Act.''
12 USC 2603. Uniform settlement statement
TITLE 12 -- BANKS AND BANKING
(a) The Secretary, in consultation with the Administrator of
Veteran's Affairs, the Federal Deposit Insurance Corporation, and the
Federal Home Loan Bank Board, shall develop and prescribe a standard
form for the statement of settlement costs which shall be used (with
such variations as may be necessary to reflect differences in legal and
administrative requirements or practices in different areas of the
country) as the standard real estate settlement form in all transactions
in the United States which involve federally related mortgage loans.
Such form shall conspicuously and clearly itemize all charges imposed
upon the borrower and all charges imposed upon the seller in connection
with the settlement and shall indicate whether any title insurance
premium included in such charges covers or insures the lender's interest
in the property, the borrower's interest, or both. The Secretary may,
by regulation, permit the deletion from the form prescribed under this
section of items which are not, under local laws or customs, applicable
in any locality, except that such regulation shall require that the
numerical code prescribed by the Secretary be retained in forms to be
used in all localities. Nothing in this section may be construed to
require that that part of the standard form which relates to the
borrower's transaction be furnished to the seller, or to require that
that part of the standard form which relates to the seller be furnished
to the borrower.
(b) The form prescribed under this section shall be completed and
made available for inspection by the borrower at or before settlement by
the person conducting the settlement, except that (1) the Secretary may
exempt from the requirements of this section settlements occurring in
localities where the final settlement statement is not customarily
provided at or before the date of settlement, or settlements where such
requirements are impractical and (2) the borrower may, in accordance
with regulations of the Secretary, waive his right to have the form made
available at such time. Upon the request of the borrower to inspect the
form prescribed under this section during the business day immediately
preceding the day of settlement, the person who will conduct the
settlement shall permit the borrower to inspect those items which are
known to such person during such preceding day.
(Pub. L. 93-533, 4, Dec. 22, 1974, 88 Stat. 1725; Pub. L. 94-205, 3,
Jan. 2, 1976, 89 Stat. 1157.)
1976 -- Subsec. (a). Pub. L. 94-205, 3(1)-(3), designated existing
provisions as subsec. (a), struck out ''minimum'' after ''with such''
and ''unavoidable'' after ''necessary to reflect'' in parenthetical
provisions covering allowable regional variations in the uniform
settlement statement, and substituted provisions authorizing the
Secretary to permit deletions from the standard form for provisions
requiring that the standard form contain all the information and data
required under the Truth in Lending Act.
Subsec. (b). Pub. L. 94-205, 3(4), added subsec. (b).
Reference to Administrator of Veterans' Affairs deemed to refer to
Secretary of Veterans Affairs pursuant to section 10 of Pub. L.
100-527, set out as a Department of Veterans Affairs Act note under
section 301 of Title 38, Veterans' Benefits.
Amendment by Pub. L. 94-205 effective Jan. 2, 1976, with the
Secretary authorized to suspend for up to 180 days from Jan. 2, 1976,
any provision of this section as amended by Pub. L. 94-205, see section
12 of Pub. L. 94-205, set out as a note under section 2602 of this
title.
Federal Home Loan Bank Board abolished and functions transferred, see
sections 401 to 406 of Pub. L. 101-73, set out as a note under section
1437 of this title.
12 USC 2604. Special information booklets
TITLE 12 -- BANKS AND BANKING
(a) Distribution by Secretary to lenders to help borrowers
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. The Secretary shall distribute such booklets to all lenders
which make federally related mortgage loans.
(b) Form and detail; cost elements, standard settlement form, escrow
accounts, selection of persons for settlement services; consideration
of differences in settlement procedures
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 clear and concise language --
(1) a description and explanation of the nature and purpose of each
cost incident to a real estate settlement;
(2) an explanation and sample of the standard real estate settlement
form developed and prescribed under section 2603 of this title;
(3) a description and explanation of the nature and purpose of escrow
accounts when used in connection with loans secured by residential real
estate;
(4) an explanation of the choices available to buyers of residential
real estate in selecting persons to provide necessary services incident
to a real estate settlement; and
(5) an explanation of the unfair practices and unreasonable or
unnecessary charges to be avoided by the prospective buyer with respect
to a real estate settlement.
Such booklets shall take into consideration differences in real
estate settlement procedures which may exist among the several States
and territories of the United States and among separate political
subdivisions within the same State and territory.
(c) Estimate of charges
Each lender shall include with the booklet a good faith estimate of
the amount or range of charges for specific settlement services the
borrower is likely to incur in connection with the settlement as
prescribed by the Secretary.
(d) Distribution by lenders to loan applicants at time of receipt or
preparation of applications
Each lender referred to in subsection (a) of this section shall
provide the booklet described in such subsection to each person from
whom it receives or for whom it prepares a written application to borrow
money to finance the purchase of residential real estate. Such booklet
shall be provided at the time of receipt or preparation of such
application.
(e) Printing and distribution by lenders of booklets approved by
Secretary
Booklets may be printed and distributed by lenders if their form and
content are approved by the Secretary as meeting the requirements of
subsection (b) of this section.
(Pub. L. 93-533, 5, Dec. 22, 1974, 88 Stat. 1725; Pub. L. 94-205, 4,
Jan. 2, 1976, 89 Stat. 1158.)
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).
Amendment by Pub. L. 94-205 effective Jan. 2, 1976, with the
Secretary authorized to suspend for up to 180 days from Jan. 2, 1976,
any provision of this section as amended by Pub. L. 94-205, see section
12 of Pub. L. 94-205, set out as a note under section 2602 of this
title.
12 USC 2605. Servicing of mortgage loans and administration of escrow
accounts
TITLE 12 -- BANKS AND BANKING
(a) Disclosure to applicant relating to assignment, sale, or transfer
of loan servicing
(1) In general
Each person who makes a federally related mortgage loan shall
disclose to each person who applies for any such loan, at the time of
application for the loan --
(A) whether the servicing of any such loan may be assigned, sold, or
transferred to any other person at any time while such loan is
outstanding;
(B) for each of the most recent 3 calendar years completed (at the
time of such application), the percentage (rounded to the nearest
quartile) of loans made by such person for which the servicing has been
assigned, sold, or transferred as of the end of the most recent calendar
year completed, except that --
(i) for any loan application during the 12-month period beginning on
November 28, 1990, the information disclosed under this subparagraph may
be for only the most recent calendar year completed, and for any loan
application during the 12-month period beginning 1 year after November
28, 1990, the information disclosed under this subparagraph may be for
the most recent 2 calendar years completed; and
(ii) this subparagraph may not be construed to require the inclusion,
in the percentage disclosed, of any loans the servicing of which has
been assigned, sold, or transferred by the person making the loan to a
transferee servicer that is an affiliate or subsidiary of such person;
and
(C) if the person who makes the loan does not engage in the servicing
of any federally related mortgage loans, that there is a present intent
on the part of such person (at the time of such application) to assign,
sell, or transfer the servicing of such loan to another person.
(2) Model disclosure statements
Not later than 90 days after November 28, 1990, the Secretary shall
develop a model disclosure statement for notification to applicants
under paragraph (1) with respect to servicing procedures, transfer
practices and requirements, and complaint resolution. The model
statement shall provide for the person originating the loan to disclose
their capacity to service loans and the best available estimate of the
percentage of all loans made by such person for which the servicing will
be assigned, sold, or transferred during the 12-month period beginning
upon the origination. The estimate shall be expressed as one of the
following range of possibilities -- between 0 and 25 percent, between 26
and 50 percent, between 51 and 75 percent, or between 76 and 100
percent. This paragraph may not be construed to require the inclusion,
in the estimate disclosed, of any loans the servicing of which will be
assigned, sold, or transferred by the person originating the loan to a
transferee servicer that is an affiliate or subsidiary of such person.
(3) Signature of applicant
Any disclosure of the information required under paragraph (1) shall
not be effective for purposes of this section unless the disclosure is
accompanied by a written statement, in such form as the Secretary shall
develop before the expiration of the 90-day period beginning on November
28, 1990, that the applicant has read and understood the disclosure and
that is evidenced by the signature of the applicant at the place where
such statement appears in the application.
(b) Notice by transferor of loan servicing at time of transfer
(1) Notice requirement
Each servicer of any federally related mortgage loan shall notify the
borrower in writing of any assignment, sale, or transfer of the
servicing of the loan to any other person.
(2) Time of notice
(A) In general
Except as provided under subparagraphs (B) and (C), the notice
required under paragraph (1) shall be made to the borrower not less than
15 days before the effective date of transfer of the servicing of the
mortgage loan (with respect to which such notice is made).
(B) Exception for certain proceedings
The notice required under paragraph (1) shall be made to the borrower
not more than 30 days after the effective date of assignment, sale, or
transfer of the servicing of the mortgage loan (with respect to which
such notice is made) in any case in which the assignment, sale, or
transfer of the servicing of the mortgage loan is preceded by --
(i) termination of the contract for servicing the loan for cause;
(ii) commencement of proceedings for bankruptcy of the servicer; or
(iii) commencement of proceedings by the Federal Deposit Insurance
Corporation or the Resolution Trust Corporation for conservatorship or
receivership of the servicer (or an entity by which the servicer is
owned or controlled).
(C) Exception for notice provided at closing
The provisions of subparagraphs (A) and (B) shall not apply to any
assignment, sale, or transfer of the servicing of any mortgage loan if
the person who makes the loan provides to the borrower, at settlement
(with respect to the property for which the mortgage loan is made),
written notice under paragraph (3) of such transfer.
(3) Contents of notice
The notice required under paragraph (1) shall include the following
information:
(A) The effective date of transfer of the servicing described in such
paragraph.
(B) The name, address, and toll-free or collect call telephone number
of the transferee servicer.
(C) A toll-free or collect call telephone number for (i) an
individual employed by the transferor servicer, or (ii) the department
of the transferor servicer, that can be contacted by the borrower to
answer inquiries relating to the transfer of servicing.
(D) The name and toll-free or collect call telephone number for (i)
an individual employed by the transferee servicer, or (ii) the
department of the transferee servicer, that can be contacted by the
borrower to answer inquiries relating to the transfer of servicing.
(E) The date on which the transferor servicer who is servicing the
mortgage loan before the assignment, sale, or transfer will cease to
accept payments relating to the loan and the date on which the
transferee servicer will begin to accept such payments.
(F) Any information concerning the effect the transfer may have, if
any, on the terms of or the continued availability of mortgage life or
disability insurance or any other type of optional insurance and what
action, if any, the borrower must take to maintain coverage.
(G) A statement that the assignment, sale, or transfer of the
servicing of the mortgage loan does not affect any term or condition of
the security instruments other than terms directly related to the
servicing of such loan.
(c) Notice by transferee of loan servicing at time of transfer
(1) Notice requirement
Each transferee servicer to whom the servicing of any federally
related mortgage loan is assigned, sold, or transferred shall notify the
borrower of any such assignment, sale, or transfer.
(2) Time of notice
(A) In general
Except as provided in subparagraphs (B) and (C), the notice required
under paragraph (1) shall be made to the borrower not more than 15 days
after the effective date of transfer of the servicing of the mortgage
loan (with respect to which such notice is made).
(B) Exception for certain proceedings
The notice required under paragraph (1) shall be made to the borrower
not more than 30 days after the effective date of assignment, sale, or
transfer of the servicing of the mortgage loan (with respect to which
such notice is made) in any case in which the assignment, sale, or
transfer of the servicing of the mortgage loan is preceded by --
(i) termination of the contract for servicing the loan for cause;
(ii) commencement of proceedings for bankruptcy of the servicer; or
(iii) commencement of proceedings by the Federal Deposit Insurance
Corporation or the Resolution Trust Corporation for conservatorship or
receivership of the servicer (or an entity by which the servicer is
owned or controlled).
(C) Exception for notice provided at closing
The provisions of subparagraphs (A) and (B) shall not apply to any
assignment, sale, or transfer of the servicing of any mortgage loan if
the person who makes the loan provides to the borrower, at settlement
(with respect to the property for which the mortgage loan is made),
written notice under paragraph (3) of such transfer.
(3) Contents of notice
Any notice required under paragraph (1) shall include the information
described in subsection (b)(3) of this section.
(d) Treatment of loan payments during transfer period
During the 60-day period beginning on the effective date of transfer
of the servicing of any federally related mortgage loan, a late fee may
not be imposed on the borrower with respect to any payment on such loan
and no such payment may be treated as late for any other purposes, if
the payment is received by the transferor servicer (rather than the
transferee servicer who should properly receive payment) before the due
date applicable to such payment.
(e) Duty of loan servicer to respond to borrower inquiries
(1) Notice of receipt of inquiry
(A) In general
If any servicer of a federally related mortgage loan receives a
qualified written request from the borrower (or an agent of the
borrower) for information relating to the servicing of such loan, the
servicer shall provide a written response acknowledging receipt of the
correspondence within 20 days (excluding legal public holidays,
Saturdays, and Sundays) unless the action requested is taken within such
period.
(B) Qualified written request
For purposes of this subsection, a qualified written request shall be
a written correspondence, other than notice on a payment coupon or other
payment medium supplied by the servicer, that --
(i) includes, or otherwise enables the servicer to identify, the name
and account of the borrower; and
(ii) includes a statement of the reasons for the belief of the
borrower, to the extent applicable, that the account is in error or
provides sufficient detail to the servicer regarding other information
sought by the borrower.
(2) Action with respect to inquiry
Not later than 60 days (excluding legal public holidays, Saturdays,
and Sundays) after the receipt from any borrower of any qualified
written request under paragraph (1) and, if applicable, before taking
any action with respect to the inquiry of the borrower, the servicer
shall --
(A) make appropriate corrections in the account of the borrower,
including the crediting of any late charges or penalties, and transmit
to the borrower a written notification of such correction (which shall
include the name and telephone number of a representative of the
servicer who can provide assistance to the borrower);
(B) after conducting an investigation, provide the borrower with a
written explanation or clarification that includes --
(i) to the extent applicable, a statement of the reasons for which
the servicer believes the account of the borrower is correct as
determined by the servicer; and
(ii) the name and telephone number of an individual employed by, or
the office or department of, the servicer who can provide assistance to
the borrower; or
(C) after conducting an investigation, provide the borrower with a
written explanation or clarification that includes --
(i) information requested by the borrower or an explanation of why
the information requested is unavailable or cannot be obtained by the
servicer; and
(ii) the name and telephone number of an individual employed by, or
the office or department of, the servicer who can provide assistance to
the borrower.
(3) Protection of credit rating
During the 60-day period beginning on the date of the servicer's
receipt from any borrower of a qualified written request relating to a
dispute regarding the borrower's payments, a servicer may not provide
information regarding any overdue payment, owed by such borrower and
relating to such period or qualified written request, to any consumer
reporting agency (as such term is defined under section 1681a of title
15).
(f) Damages and costs
Whoever fails to comply with any provision of this section shall be
liable to the borrower for each such failure in the following amounts:
(1) Individuals
In the case of any action by an individual, an amount equal to the
sum of --
(A) any actual damages to the borrower as a result of the failure;
and
(B) any additional damages, as the court may allow, in the case of a
pattern or practice of noncompliance with the requirements of this
section, in an amount not to exceed $1,000.
(2) Class actions
In the case of a class action, an amount equal to the sum of --
(A) any actual damages to each of the borrowers in the class as a
result of the failure; and
(B) any additional damages, as the court may allow, in the case of a
pattern or practice of noncompliance with the requirements of this
section, in an amount not greater than $1,000 for each member of the
class, except that the total amount of damages under this subparagraph
in any class action may not exceed the lesser of --
(i) $500,000; or
(ii) 1 percent of the net worth of the servicer.
(3) Costs
In addition to the amounts under paragraph (1) or (2), in the case of
any successful action under this section, the costs of the action,
together with any attorneys fees incurred in connection with such action
as the court may determine to be reasonable under the circumstances.
(4) Nonliability
A transferor or transferee servicer shall not be liable under this
subsection for any failure to comply with any requirement under this
section if, within 60 days after discovering an error (whether pursuant
to a final written examination report or the servicer's own procedures)
and before the commencement of an action under this subsection and the
receipt of written notice of the error from the borrower, the servicer
notifies the person concerned of the error and makes whatever
adjustments are necessary in the appropriate account to ensure that the
person will not be required to pay an amount in excess of any amount
that the person otherwise would have paid.
(g) Administration of escrow accounts
If the terms of any federally related mortgage loan require the
borrower to make payments to the servicer of the loan for deposit into
an escrow account for the purpose of assuring payment of taxes,
insurance premiums, and other charges with respect to the property, the
servicer shall make payments from the escrow account for such taxes,
insurance premiums, and other charges in a timely manner as such
payments become due.
(h) Preemption of conflicting State laws
Notwithstanding any provision of any law or regulation of any State,
a person who makes a federally related mortgage loan or a servicer shall
be considered to have complied with the provisions of any such State law
or regulation requiring notice to a borrower at the time of application
for a loan or transfer of the servicing of a loan if such person or
servicer complies with the requirements under this section regarding
timing, content, and procedures for notification of the borrower.
(i) Definitions
For purposes of this section:
(1) Effective date of transfer
The term ''effective date of transfer'' means the date on which the
mortgage payment of a borrower is first due to the transferee servicer
of a mortgage loan pursuant to the assignment, sale, or transfer of the
servicing of the mortgage loan.
(2) Servicer
The term ''servicer'' means the person responsible for servicing of a
loan (including the person who makes or holds a loan if such person also
services the loan). The term does not include --
(A) the Federal Deposit Insurance Corporation or the Resolution Trust
Corporation, in connection with assets acquired, assigned, sold, or
transferred pursuant to section 1823(c) of this title or as receiver or
conservator of an insured depository institution; and
(B) the Government National Mortgage Association, the Federal
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Resolution Trust Corporation, or the Federal Deposit
Insurance Corporation, in any case in which the assignment, sale, or
transfer of the servicing of the mortgage loan is preceded by --
(i) termination of the contract for servicing the loan for cause;
(ii) commencement of proceedings for bankruptcy of the servicer; or
(iii) commencement of proceedings by the Federal Deposit Insurance
Corporation or the Resolution Trust Corporation for conservatorship or
receivership of the servicer (or an entity by which the servicer is
owned or controlled).
(3) Servicing
The term ''servicing'' means receiving any scheduled periodic
payments from a borrower pursuant to the terms of any loan, including
amounts for escrow accounts described in section 2609 of this title, and
making the payments of principal and interest and such other payments
with respect to the amounts received from the borrower as may be
required pursuant to the terms of the loan.
(j) Transition
(1) Originator liability
A person who makes a federally related mortgage loan shall not be
liable to a borrower because of a failure of such person to comply with
subsection (a) of this section with respect to an application for a loan
made by the borrower before the regulations referred to in paragraph (3)
take effect.
(2) Servicer liability
A servicer of a federally related mortgage loan shall not be liable
to a borrower because of a failure of the servicer to perform any duty
under subsection (b), (c), (d), or (e) of this section that arises
before the regulations referred to in paragraph (3) take effect.
(3) Regulations and effective date
The Secretary shall, by regulations that shall take effect not later
than April 20, 1991, establish any requirements necessary to carry out
this section. Such regulations shall include the model disclosure
statement required under subsection (a)(2) of this section.
(Pub. L. 93-533, 6, as added Pub. L. 101-625, title IX, 941, Nov.
28, 1990, 104 Stat. 4405, and amended Pub. L. 102-27, title III, 312(
a), Apr. 10, 1991, 105 Stat. 154.)
A prior section 2605, Pub. L. 93-533, 6, Dec. 22, 1974, 88 Stat.
1726, related to advanced itemized disclosure of settlement costs by the
lender and liability of the lender for failure to comply, was repealed
by Pub. L. 94-205, 5, Jan. 2, 1976, 89 Stat. 1158.
1991 -- Subsec. (j). Pub. L. 102-27 added subsec. (j).
12 USC 2606. Repealed. Pub. L. 94-205, 6, Jan. 2, 1976, 89 Stat. 1158
TITLE 12 -- BANKS AND BANKING
Section, Pub. L. 93-533, 7, Dec. 22, 1974, 88 Stat. 1727, related
to seller or his agent confirming that information concerning an
existing residence was disclosed to buyer in writing before a commitment
for a mortgage loan was made.
Repeal effective Jan. 2, 1976, see section 12 of Pub. L. 94-205,
set out as an Effective Date of 1976 Amendment note under section 2602
of this title.
12 USC 2607. Prohibition against kickbacks and unearned fees
TITLE 12 -- BANKS AND BANKING
(a) Business referrals
No person shall give and no person shall accept any fee, kickback, or
thing of value pursuant to any agreement or understanding, oral or
otherwise, that business incident to or a part of a real estate
settlement service involving a federally related mortgage loan shall be
referred to any person.
(b) Splitting charges
No person shall give and no person shall accept any portion, split,
or percentage of any charge made or received for the rendering of a real
estate settlement service in connection with a transaction involving a
federally related mortgage loan other than for services actually
performed.
(c) Fees, salaries, compensation, or other payments
Nothing in this section shall be construed as prohibiting (1) the
payment of a fee (A) to attorneys at law for services actually rendered
or (B) by a title company to its duly appointed agent for services
actually performed in the issuance of a policy of title insurance or (C)
by a lender to its duly appointed agent for services actually performed
in the making of a loan, (2) the payment to any person of a bona fide
salary or compensation or other payment for goods or facilities actually
furnished or for services actually performed, (3) payments pursuant to
cooperative brokerage and referral arrangements or agreements between
real estate agents and brokers, (4) controlled business arrangements so
long as (A) at or prior to the time of the referral a disclosure is made
of the existence of such an arrangement to the person being referred
and, in connection with the referral, such person is provided a written
estimate of the charge or range of charges generally made by the
provider to which the person is referred, except that where a lender
makes the referral, this requirement may be satisfied as part of and at
the time that the estimates of settlement charges required under section
2604(c) of this title are provided, (B) such person is not required to
use any particular provider of settlement services, and (C) the only
thing of value that is received from the arrangement, other than the
payments permitted under this subsection, is a return on the ownership
interest or franchise relationship, or (5) such other payments or
classes of payments or other transfers as are specified in regulations
prescribed by the Secretary, after consultation with the Attorney
General, the Secretary of Veterans Affairs, the Federal Home Loan Bank
Board, the Federal Deposit Insurance Corporation, the Board of Governors
of the Federal Reserve System, and the Secretary of Agriculture. For
purposes of the preceding sentence, the following shall not be
considered a violation of clause (4)(B): (i) any arrangement that
requires a buyer, borrower, or seller to pay for the services of an
attorney, credit reporting agency, or real estate appraiser chosen by
the lender to represent the lender's interest in a real estate
transaction, or (ii) any arrangement where an attorney or law firm
represents a client in a real estate transaction and issues or arranges
for the issuance of a policy of title insurance in the transaction
directly as agent or through a separate corporate title insurance agency
that may be established by that attorney or law firm and operated as an
adjunct to his or its law practice.
(d) Penalties for violations; joint and several liability; treble
damages; actions for injunction by Secretary and by State officials;
costs and attorney fees; construction of State laws
(1) Any person or persons who violate the provisions of this section
shall be fined not more than $10,000 or imprisoned for not more than one
year, or both.
(2) Any person or persons who violate the prohibitions or limitations
of this section shall be jointly and severally liable to the person or
persons charged for the settlement service involved in the violation in
an amount equal to three times the amount of any charge paid for such
settlement service.
(3) No person or persons shall be liable for a violation of the
provisions of subsection (c)(4)(A) of this section if such person or
persons proves by a preponderance of the evidence that such violation
was not intentional and resulted from a bona fide error notwithstanding
maintenance of procedures that are reasonably adapted to avoid such
error.
(4) The Secretary, the Attorney General of any State, or the
insurance commissioner of any State may bring an action to enjoin
violations of this section.
(5) In any private action brought pursuant to this subsection, the
court may award to the prevailing party the court costs of the action
together with reasonable attorneys fees.
(6) No provision of State law or regulation that imposes more
stringent limitations on controlled business arrangements shall be
construed as being inconsistent with this section.
(Pub. L. 93-533, 8, Dec. 22, 1974, 88 Stat. 1727; Pub. L. 94-205, 7,
Jan. 2, 1976, 89 Stat. 1158; Pub. L. 98-181, title IV, 461(b), (c),
Nov. 30, 1983, 97 Stat. 1231; Pub. L. 100-242, title V, 570(g), Feb. 5,
1988, 101 Stat. 1950; Pub. L. 102-54, 13(d)(4), June 13, 1991, 105
Stat. 275.)
1991 -- Subsec. (c)(5). Pub. L. 102-54 substituted ''Secretary of
Veterans Affairs'' for ''Administrator of Veterans' Affairs''.
1988 -- Subsec. (c)(5). Pub. L. 100-242 substituted ''clause (4)(
B)'' for ''clause 4(B)''.
1983 -- Subsec. (c). Pub. L. 98-181, 461(b), redesignated cl. (4) as
(5), added cl. (4) and provisions following cl. (5), as so
redesignated, relating to arrangements which shall not be considered a
violation of cl. (4)(B).
Subsec. (d)(2). Pub. L. 98-181, 461(c), substituted provisions
setting forth the liability of persons violating the prohibitions or
limitations of this section for provisions setting forth liability, in
addition to penalties provided in par. (1), of persons violating
subsecs. (a) and (b) of this section, plus costs and attorney's fees.
Subsec. (d)(3) to (6). Pub. L. 98-181, 461(c), added pars. (3) to
(6).
1976 -- Subsec. (c). Pub. L. 94-205 added cls. (3) and (4).
Amendment by Pub. L. 98-181 effective Jan. 1, 1984, see section
461(f) of Pub. L. 98-181, set out as a note under section 2602 of this
title.
Amendment by Pub. L. 94-205 effective Jan. 2, 1976, see section 12
of Pub. L. 94-205, set out as a note under section 2602 of this title.
Federal Home Loan Bank Board abolished and functions transferred, see
sections 401 to 406 of Pub. L. 101-73, set out as a note under section
1437 of this title.
12 USC 2608. Title companies; liability of seller
TITLE 12 -- BANKS AND BANKING
(a) No seller of property that will be purchased with the assistance
of a federally related mortgage loan shall require directly or
indirectly, as a condition to selling the property, that title insurance
covering the property be purchased by the buyer from any particular
title company.
(b) Any seller who violates the provisions of subsection (a) of this
section shall be liable to the buyer in an amount equal to three times
all charges made for such title insurance.
(Pub. L. 93-533, 9, Dec. 22, 1974, 88 Stat. 1728.)
12 USC 2609. Limitation on requirement of advance deposits in escrow
accounts
TITLE 12 -- BANKS AND BANKING
(a) In general
A lender, in connection with a federally related mortgage loan, may
not require the borrower or prospective borrower --
(1) to deposit in any escrow account which may be established in
connection with such loan for the purpose of assuring payment of taxes,
insurance premiums, or other charges with respect to the property, in
connection with the settlement, an aggregate sum (for such purpose) in
excess of a sum that will be sufficient to pay such taxes, insurance
premiums and other charges attributable to the period beginning on the
last date on which each such charge would have been paid under the
normal lending practice of the lender and local custom, provided that
the selection of each such date constitutes prudent lending practice,
and ending on the due date of its first full installment payment under
the mortgage, plus one-sixth of the estimated total amount of such
taxes, insurance premiums and other charges to be paid on dates, as
provided above, during the ensuing twelve-month period; or
(2) to deposit in any such escrow account in any month beginning with
the first full installment payment under the mortgage a sum (for the
purpose of assuring payment of taxes, insurance premiums and other
charges with respect to the property) in excess of the sum of (A)
one-twelfth of the total amount of the estimated taxes, insurance
premiums and other charges which are reasonably anticipated to be paid
on dates during the ensuing twelve months which dates are in accordance
with the normal lending practice of the lender and local custom,
provided that the selection of each such date constitutes prudent
lending practice, plus (B) such amount as is necessary to maintain an
additional balance in such escrow account not to exceed one-sixth of the
estimated total amount of such taxes, insurance premiums and other
charges to be paid on dates, as provided above, during the ensuing
twelve-month period: Provided, however, That in the event the lender
determines there will be or is a deficiency he shall not be prohibited
from requiring additional monthly deposits in such escrow account to
avoid or eliminate such deficiency.
(b) Notification of shortage in escrow account
If the terms of any federally related mortgage loan require the
borrower to make payments to the servicer (as the term is defined in
section 2605(i) of this title) of the loan for deposit into an escrow
account for the purpose of assuring payment of taxes, insurance
premiums, and other charges with respect to the property, the servicer
shall notify the borrower not less than annually of any shortage of
funds in the escrow account.
(c) Escrow account statements
(1) Initial statement
(A) In general
Any servicer that has established an escrow account in connection
with a federally related mortgage loan shall submit to the borrower for
which the escrow account has been established a statement clearly
itemizing the estimated taxes, insurance premiums, and other charges
that are reasonably anticipated to be paid from the escrow account
during the first 12 months after the establishment of the account and
the anticipated dates of such payments.
(B) Time of submission
The statement required under subparagraph (A) shall be submitted to
the borrower at closing with respect to the property for which the
mortgage loan is made or not later than the expiration of the 45-day
period beginning on the date of the establishment of the escrow account.
(C) Initial statement at closing
Any servicer may submit the statement required under subparagraph (A)
to the borrower at closing and may incorporate such statement in the
uniform settlement statement required under section 2603 of this title.
Not later than the expiration of the 90-day period beginning on November
28, 1990, the Secretary shall issue regulations prescribing any changes
necessary to the uniform settlement statement under section 2603 of this
title that specify how the statement required under subparagraph (A) of
this section shall be incorporated in the uniform settlement statement.
(2) Annual statement
(A) In general
Any servicer that has established or continued an escrow account in
connection with a federally related mortgage loan shall submit to the
borrower for which the escrow account has been established or continued
a statement clearly itemizing, for each period described in subparagraph
(B) (during which the servicer services the escrow account), the amount
of the borrower's current monthly payment, the portion of the monthly
payment being placed in the escrow account, the total amount paid into
the escrow account during the period, the total amount paid out of the
escrow account during the period for taxes, insurance premiums, and
other charges (as separately identified), and the balance in the escrow
account at the conclusion of the period.
(B) Time of submission
The statement required under subparagraph (A) shall be submitted to
the borrower not less than once for each 12-month period, the first such
period beginning on the first January 1st that occurs after November 28,
1990, and shall be submitted not more than 30 days after the conclusion
of each such 1-year period.
(d) Penalties
(1) In general
In the case of each failure to submit a statement to a borrower as
required under subsection (c) of this section, the Secretary shall
assess to the lender or escrow servicer failing to submit the statement
a civil penalty of $50 for each such failure, but the total amount
imposed on such lender or escrow servicer for all such failures during
any 12-month period referred to in subsection (b) /1/ of this section
may not exceed $100,000.
(2) Intentional violations
If any failure to which paragraph (1) applies is due to intentional
disregard of the requirement to submit the statement, then, with respect
to such failure --
(A) the penalty imposed under paragraph (1) shall be $100; and
(B) in the case of any penalty determined under subparagraph (A), the
$100,000 limitation under paragraph (1) shall not apply.
(Pub. L. 93-533, 10, Dec. 22, 1974, 88 Stat. 1728; Pub. L. 94-205,
8, Jan. 2, 1976, 89 Stat. 1158; Pub. L. 101-625, title IX, 942(a), Nov.
28, 1990, 104 Stat. 4411.)
1990 -- Pub. L. 101-625 designated existing provisions as subsec.
(a), inserted heading, and added subsecs. (b) to (d).
1976 -- Pub. L. 94-205 provided that in addition to amounts required
for the payment of taxes, insurance premiums, and other charges due at
settlement, the buyer could not be required at settlement to place into
an escrow account more than one-sixth of the estimated total amount of
such taxes, insurance premiums, and other charges payable within a
twelve month period beginning on the date of settlement, but the buyer
could be required to make monthly payments into an escrow account
sufficient to maintain a surplus of one-sixth of the estimated total
amount payable in the coming twelve month period.
Amendment by Pub. L. 94-205 effective Jan. 2, 1976, see section 12
of Pub. L. 94-205, set out as a note under section 2602 of this title.
/1/ So in original. Probably should be subsection ''(c)''.
12 USC 2610. Prohibition of fees for preparation of truth-in-lending,
uniform settlement, and escrow account statements
TITLE 12 -- BANKS AND BANKING
No fee shall be imposed or charge made upon any other person (as a
part of settlement costs or otherwise) by a lender in connection with a
federally related mortgage loan made by it (or a loan for the purchase
of a mobile home), or by a servicer (as the term is defined under
section 2605(i) of this title), for or on account of the preparation and
submission by such lender or servicer of the statement or statements
required (in connection with such loan) by sections 2603 and 2609(c) of
this title or by the Truth in Lending Act (15 U.S.C. 1601 et seq.).
(Pub. L. 93-533, 12, Dec. 22, 1974, 88 Stat. 1729; Pub. L. 101-625,
title IX, 942(b), Nov. 28, 1990, 104 Stat. 4412.)
Truth in Lending Act, referred to in text, is title I of Pub. L.
90-321, May 29, 1968, 82 Stat. 146, as amended, which is classified
generally to subchapter I ( 1601 et seq.) of chapter 41 of Title 15,
Commerce and Trade. For complete classification of this Act to the
Code, see Short Title note set out under section 1601 of Title 15 and
Tables.
1990 -- Pub. L. 101-625 substituted present section catchline for
''Fee for preparation of truth-in-lending and uniform settlement
statements'', inserted after first comma ''or by a servicer (as the term
is defined under section 2605(i) of this title),'', and substituted
''lender or servicer'' for second reference to ''lender'' and
''2609(c)'' for ''2605''.
12 USC 2611. Land parcel recordation system; establishment on
demonstration basis
TITLE 12 -- BANKS AND BANKING
The Secretary shall establish and place in operation on a
demonstration basis, in representative political subdivisions (selected
by him) in various areas of the United States, a model system or systems
for the recordation of land title information in a manner and form
calculated to facilitate and simplify land transfers and mortgage
transactions and reduce the cost thereof, with a view to the possible
development (utilizing the information and experience gained under this
section) of a nationally uniform system of land parcel recordation.
(Pub. L. 93-533, 13, Dec. 22, 1974, 88 Stat. 1730.)
12 USC 2612. Report of Secretary on necessity for further Congressional
action
TITLE 12 -- BANKS AND BANKING
(a) Administrative consultations; study, investigation, and
hearings; time of submission
The Secretary, after consultation with the Administrator of Veterans'
Affairs, the Federal Deposit Insurance Corporation, and the Federal Home
Loan Bank Board, and after such study, investigation, and hearings (at
which representatives of consumers groups shall be allowed to testify)
as he deems appropriate, shall, not less than three years nor more than
five years from the effective date of this chapter, report to the
Congress on whether, in view of the implementation of the provisions of
this chapter imposing certain requirements and prohibiting certain
practices in connection with real estate settlements, there is any
necessity for further legislation in this area.
(b) Scope of report; specific practices or problems and corrective
measures; cost burden for real estate settlement services; Federal
regulation of charges and regulatory scheme; local government
recordation of land title information and Federal assistance for
development of a model system
If the Secretary concludes that there is necessity for further
legislation, he shall report to the Congress on the specific practices
or problems that should be the subject of such legislation and the
corrective measures that need to be taken. In addition, the Secretary
shall include in his report --
(1) recommendations on the desirability of requiring lenders of
federally related mortgage loans to bear the costs of particular real
estate settlement services that would otherwise be paid for by
borrowers;
(2) recommendations on whether Federal regulation of the charges for
real estate settlement services in federally related mortgage
transactions is necessary and desirable, and, if he concludes that such
regulation is necessary and desirable, a description and analysis of the
regulatory scheme he believes Congress should adopt; and
(3) recommendations on the ways in which the Federal Government can
assist and encourage local governments to modernize their methods for
the recordation of land title information, including the feasibility of
providing financial assistance or incentives to local governments that
seek to adopt one of the model systems developed by the Secretary in
accordance with the provisions of section 2611 of this title.
(Pub. L. 93-533, 14, Dec. 22, 1974, 88 Stat. 1730.)
For the effective date of this chapter, referred to in subsec. (a),
see Effective Date note set out under section 2601 of this title.
Reference to Administrator of Veterans' Affairs deemed to refer to
Secretary of Veterans Affairs pursuant to section 10 of Pub. L.
100-527, set out as a Department of Veterans Affairs Act note under
section 301 of Title 38, Veterans' Benefits.
Federal Home Loan Bank Board abolished and functions transferred, see
sections 401 to 406 of Pub. L. 101-73, set out as a note under section
1437 of this title.
12 USC 2613. Demonstration to determine feasibility of including
statements of settlement costs in special information booklets; report
to Congress
TITLE 12 -- BANKS AND BANKING
The Secretary shall, on a demonstration basis in selected housing
market areas, have prepared and included in the special information
booklets required to be furnished under section 2604 of this title,
statements of the range of costs for specific settlement services in
such areas. Not later than June 30, 1976, the Secretary shall transmit
to the Congress a full report on the demonstration conducted under this
section. Such report shall contain the Secretary's assessment of the
feasibility of preparing and including settlement cost range statements
for all housing market areas in the special information booklets for
such areas.
(Pub. L. 93-533, 15, Dec. 22, 1974, 88 Stat. 1730.)
12 USC 2614. Jurisdiction of courts; limitations
TITLE 12 -- BANKS AND BANKING
Any action pursuant to the provisions of section 2607 or 2608 of this
title may be brought in the United States district court or in any other
court of competent jurisdiction, for the district in which the property
involved is located, or where the violation is alleged to have occurred,
within one year from the date of the occurrence of the violation, except
that actions brought by the Secretary, the Attorney General of any
State, or the insurance commissioner of any State may be brought within
3 years from the date of the occurrence of the violation.
(Pub. L. 93-533, 16, Dec. 22, 1974, 88 Stat. 1731; Pub. L. 98-181,
title IV, 461(d), Nov. 30, 1983, 97 Stat. 1232.)
1983 -- Pub. L. 98-181 amended section generally, striking out a
reference to section 2605 of this title, and inserting provision
allowing action in district where violation is alleged to have occurred,
and provision relating to time limitations in actions brought by the
Secretary, the Attorney General of any State, or the insurance
commissioner of any State.
Amendment by Pub. L. 98-181 effective Jan. 1, 1984, see section
461(f) of Pub. L. 98-181, set out as a note under section 2602 of this
title.
12 USC 2615. Contracts and liens; validity
TITLE 12 -- BANKS AND BANKING
Nothing in this chapter shall affect the validity or enforceability
of any sale or contract for the sale of real property or any loan, loan
agreement, mortgage, or lien made or arising in connection with a
federally related mortgage loan.
(Pub. L. 93-533, 17, Dec. 22, 1974, 88 Stat. 1731.)
12 USC 2616. State laws unaffected; inconsistent Federal and State
provisions
TITLE 12 -- BANKS AND BANKING
This chapter does not annul, alter, or affect, or exempt any person
subject to the provisions of this chapter from complying with, the laws
of any State with respect to settlement practices, except to the extent
that those laws are inconsistent with any provision of this chapter, and
then only to the extent of the inconsistency. The Secretary is
authorized to determine whether such inconsistencies exist. The
Secretary may not determine that any State law is inconsistent with any
provision of this chapter if the Secretary determines that such law
gives greater protection to the consumer. In making these
determinations the Secretary shall consult with the appropriate Federal
agencies.
(Pub. L. 93-533, 18, Dec. 22, 1974, 88 Stat. 1731; Pub. L. 94-205,
9, Jan. 2, 1976, 89 Stat. 1159.)
1976 -- Pub. L. 94-205 struck out ''(a)'' before ''This chapter''
and struck out subsec. (b) which provided for Federal protection
against liability for acts done or omitted in good faith in accordance
with the rules, regulations, or interpretations issued by the Secretary.
See section 2617 (b) of this title.
Amendment by Pub. L. 94-205 effective Jan. 2, 1976, see section 12
of Pub. L. 94-205, set out as a note under section 2602 of this title.
12 USC 2617. Authority of Secretary
TITLE 12 -- BANKS AND BANKING
(a) The Secretary is authorized to prescribe such rules and
regulations, to make such interpretations, and to grant such reasonable
exemptions for classes of transactions, as may be necessary to achieve
the purposes of this chapter.
(b) No provision of this chapter or the laws of any State imposing
any liability shall apply to any act done or omitted in good faith in
conformity with any rule, regulation, or interpretation thereof by the
Secretary or the Attorney General, notwithstanding that after such act
or omission has occurred, such rule, regulation, or interpretation is
amended, rescinded, or determined by judicial or other authority to be
invalid for any reason.
(c)(1) The Secretary may investigate any facts, conditions,
practices, or matters that may be deemed necessary or proper to aid in
the enforcement of the provisions of this chapter, in prescribing of
rules and regulations thereunder, or in securing information to serve as
a basis for recommending further legislation concerning real estate
settlement practices. To aid in the investigations, the Secretary is
authorized to hold such hearings, administer such oaths, and require by
subpena the attendance and testimony of such witnesses and production of
such documents as the Secretary deems advisable.
(2) Any district court of the United States within the jurisdiction
of which an inquiry is carried on may, in the case of contumacy or
refusal to obey a subpena of the Secretary issued under this section,
issue an order requiring compliance therewith; and any failure to obey
such order of the court may be punished by such court as a contempt
thereof.
(Pub. L. 93-533, 19, as added Pub. L. 94-205, 10, Jan. 2, 1976, 89
Stat. 1159, and amended Pub. L. 98-181, title IV, 461(e), Nov. 30, 1983,
97 Stat. 1232.)
1983 -- Subsec. (c). Pub. L. 98-181 added subsec. (c).
Amendment by Pub. L. 98-181 effective Jan. 1, 1984, see section
461(f) of Pub. L. 98-181, set out as a note under section 2602 of this
title.
Section effective Jan. 2, 1976, see section 12 of Pub. L. 94-205,
set out as an Effective Date of 1976 Amendment note under section 2602
of this title.
12 USC CHAPTER 28 -- EMERGENCY MORTGAGE RELIEF
TITLE 12 -- BANKS AND BANKING
Sec.
2701. Congressional findings and declaration of purpose.
2702. Mortgages eligible for assistance.
2703. Manner of assistance and repayment.
(a) Form of assistance.
(b) Amount of assistance.
(c) Monthly payments; extension of time; report of increase in
income.
(d) Conditions and terms of repayment; interest rate.
(e) Deferral of commencement of repayment; security for repayment.
2704. Insurance for emergency mortgage loans and advances.
(a) Institutions eligible.
(b) Amount of insurance.
(c) Premium charge; amount.
(d) Waiver of compliance with rules and regulations; finality and
incontestability of payment for loss; transfer of insurance.
(e) Maximum aggregate amount of loans and advances insured.
2705. Emergency mortgage relief payments.
(a) Direct payments to mortgagee.
(b) Mortgages eligible; terms and conditions.
(c) Processing of relief payments; power of Secretary.
2706. Emergency Homeowners' Relief Fund.
2707. Authority of Secretary.
(a) Rules and regulations.
(b) Payment of expenses and charges relating to acquisition,
handling, improvement, or disposal of real and personal property.
(c) Powers with respect to property rights held by Secretary.
2708. Authorization of appropriations; limitations; expiration
date for loans and advances of credit.
2709. Waiver and relaxation by institutions and approved mortgagees
of limitations with respect to mortgage delinquencies; notification to
Federal supervisory agency prior to foreclosure proceedings.
2710. Reports to Congress; time; contents.
2711. Nonapplicability of other laws.
2712. Federal Deposit Insurance Corporation advances to insured
banks.
12 USC 2701. Congressional findings and declaration of purpose
TITLE 12 -- BANKS AND BANKING
(a) The Congress finds that --
(1) the Nation is in a severe recession and that the sharp downturn
in economic activity has driven large numbers of workers into
unemployment and has reduced the incomes of many others;
(2) as a result of these adverse economic conditions the capacity of
many homeowners to continue to make mortgage payments has deteriorated
and may further deteriorate in the months ahead, leading to the
possibility of widespread mortgage foreclosures and distress sales of
homes; and
(3) many of these homeowners could retain their homes with temporary
financial assistance until economic conditions improve.
(b) It is the purpose of this chapter to provide a standby authority
which will prevent widespread mortgage foreclosures and distress sales
of homes resulting from the temporary loss of employment and income
through a program of emergency loans and advances and emergency mortgage
relief payments to homeowners to defray mortgage expenses.
(Pub. L. 94-50, title I, 102, July 2, 1975, 89 Stat. 249.)
Section 1 of Pub. L. 94-50 provided: ''That this Act (enacting this
chapter, amending sections 1723e and 1735b of this title and sections
1452 and 4106 of Title 42, The Public Health and Welfare, enacting
provisions set out as a note under this section, and amending provisions
set out as a note under section 1723e of this title) may be cited as the
'Emergency Housing Act of 1975'.''
Section 101 of title I of Pub. L. 94-50 provided that: ''This title
(enacting this chapter) may be cited as the 'Emergency Homeowners'
Relief Act'.''
12 USC 2702. Mortgages eligible for assistance
TITLE 12 -- BANKS AND BANKING
No assistance shall be extended with respect to any mortgage under
this chapter unless --
(1) the holder of the mortgage has indicated to the mortgagor its
intention to foreclose;
(2) the mortgagor and holder of the mortgage have indicated in
writing to the Secretary of Housing and Urban Development (hereinafter
referred to as the ''Secretary'') and to any agency or department of the
Federal Government responsible for the regulation of the holder that
circumstances (such as the volume of delinquent loans in its portfolio)
make it probable that there will be a foreclosure and that the mortgagor
is in need of emergency mortgage relief as authorized by this chapter,
except that such statement by the holder of the mortgage may be waived
by the Secretary if in his judgment such waiver would further the
purposes of this chapter;
(3) payments under the mortgage have been delinquent for at least
three months;
(4) the mortgagor has incurred a substantial reduction in income as a
result of involuntary unemployment or underemployment due to adverse
economic conditions and is financially unable to make full mortgage
payments;
(5) there is a reasonable prospect that the mortgagor will be able to
make the adjustments necessary for a full resumption of mortgage
payments; and
(6) the mortgaged property is the principal residence of the
mortgagor.
(Pub. L. 94-50, title I, 103, July 2, 1975, 89 Stat. 249.)
12 USC 2703. Manner of assistance and repayment
TITLE 12 -- BANKS AND BANKING
(a) Form of assistance
Assistance under this chapter with respect to a mortgage which meets
the requirements of section 2702 of this title may be provided in the
form of emergency mortgage relief loans and advances of credit insured
pursuant to section 2704 of this title or in the form of emergency
mortgage relief payments made by the Secretary pursuant to section 2705
of this title.
(b) Amount of assistance
Assistance under this chapter on behalf of a homeowner may be made
available in an amount up to the amount of the principal, interest,
taxes, ground rents, hazard insurance, and mortgage insurance premiums
due under the homeowner's mortgage, but such assistance shall not exceed
the lesser of $250 per month or the amount determined to be reasonably
necessary to supplement such amount as the homeowner is capable of
contributing toward such mortgage payment.
(c) Monthly payments; extension of time; report of increase in
income
Monthly payments may be provided under this chapter either with the
proceeds of an insured loan or advance of credit or with emergency
mortgage relief payments for up to twelve months, and, in accordance
with criteria prescribed by the Secretary, such monthly payments may be
extended once for up to twelve additional months. A mortgagor receiving
the benefit of mortgage relief assistance pursuant to this chapter shall
be required, in accordance with criteria prescribed by the Secretary, to
report any increase in income which will permit a reduction or
termination of such assistance during this period.
(d) Conditions and terms of repayment; interest rate
Emergency loans or advances of credit made and insured under section
2704 of this title, and emergency mortgage relief payments made under
section 2705 of this title, shall be repayable by the homeowner upon
such terms and conditions as the Secretary shall prescribe, except that
interest on a loan or advance of credit insured under section 2704 of
this title or emergency mortgage relief payments made under section 2705
of this title shall not be charged at a rate which exceeds the maximum
interest rate applicable with respect to mortgages insured pursuant to
section 1709(b) of this title.
(e) Deferral of commencement of repayment; security for repayment
The Secretary may provide for the deferral of the commencement of the
repayment of a loan or advance insured under section 2704 of this title
or emergency mortgage relief payments made under section 2705 of this
title until one year following the date of the last disbursement of the
proceeds of the loan or advance or payments or for such longer period as
the Secretary determines would further the purpose of this chapter. The
Secretary shall by regulation require such security for the repayment of
insured loans or advances of credit or emergency mortgage relief
payments as he deems appropriate and may require that such repayment be
secured by a lien on the mortgaged property.
(Pub. L. 94-50, title I, 104, July 2, 1975, 89 Stat. 250.)
12 USC 2704. Insurance for emergency mortgage loans and advances
TITLE 12 -- BANKS AND BANKING
(a) Institutions eligible
The Secretary is authorized, upon such terms and conditions as the
Secretary may prescribe, to insure banks, trust companies, finance
companies, mortgage companies, savings and loan associations, insurance
companies, credit unions, and such other financial institutions, which
the Secretary finds to be qualified by experience and facilities and
approves as eligible for insurance, against losses which they may
sustain as a result of emergency loans or advances of credit made in
accordance with the provisions of section 2703 of this title and this
section with respect to mortgages eligible for assistance under this
chapter.
(b) Amount of insurance
In no case shall the insurance granted by the Secretary under this
section to any financial institution on loans and advances made by such
financial institution for the purposes of this chapter exceed 40 per
centum of the total amount of such loans and advances made by the
institution, except that, with respect to any individual loan or advance
of credit, the amount of any claim for loss on such individual loan or
advance of credit paid by the Secretary under the provision of this
section shall not exceed 90 per centum of such loss.
(c) Premium charge; amount
The Secretary is authorized to fix a premium charge or charges for
the insurance granted under this section, but in the case of any loan or
advance of credit, such charge or charges shall not exceed an amount
equivalent to one-half of 1 per centum per annum of the principal
obligation of such loan or advance of credit outstanding at any time.
(d) Waiver of compliance with rules and regulations; finality and
incontestability of payment for loss; transfer of insurance
The Secretary is authorized and empowered to waive compliance with
any rule or regulation prescribed by the Secretary for the purposes of
this section if, in the Secretary's judgment, the enforcement of such
rule or regulation would impose an injustice upon an insured lending
institution which has substantially complied with such regulations in
good faith. Any payment for loss made to an insured financial
institution under this section shall be final and incontestable after
two years from the date the claim was certified for payment by the
Secretary, in the absence of fraud or misrepresentation on the part of
such institution unless a demand for repurchase of the obligation shall
have been made on behalf of the United States prior to the expiration of
such two-year period. The Secretary is authorized to transfer to any
financial institution approved for insurance under this chapter any
insurance in connection with any loan which may be sold to it by another
insured financial institution.
(e) Maximum aggregate amount of loans and advances insured
The aggregate amount of loans and advances insured under this section
shall not exceed $1,500,000,000 at any one time.
(Pub. L. 94-50, title I, 105, July 2, 1975, 89 Stat. 251.)
12 USC 2705. Emergency mortgage relief payments
TITLE 12 -- BANKS AND BANKING
(a) Direct payments to mortgagee
In the case of any mortgagee which would otherwise be eligible to
participate in the program authorized under section 2704 of this title
but does not qualify for an advance or advances as authorized by section
2712 of this title or under section 1430, 1430b, or 1431 of this title
or otherwise elects not to participate in the program authorized under
section 2704 of this title, the Secretary is authorized to make
repayable emergency mortgage relief payments directly to such mortgagee
on behalf of homeowners whose mortgages are held by such financial
institution and who are delinquent in their mortgage payments.
(b) Mortgages eligible; terms and conditions
Emergency mortgage relief payments shall be made under this section
only with respect to a mortgage which meets the requirements of section
2702 of this title and only on such terms and conditions as the
Secretary may prescribe, subject to the provisions of section 2703 of
this title.
(c) Processing of relief payments; power of Secretary
The Secretary may make such delegations and accept such
certifications with respect to the processing of mortgage relief
payments provided under this section as he deems appropriate to
facilitate the prompt and efficient implementation of the assistance
authorized under this section.
(Pub. L. 94-50, title I, 106, July 2, 1975, 89 Stat. 251.)
12 USC 2706. Emergency Homeowners' Relief Fund
TITLE 12 -- BANKS AND BANKING
(a) To carry out the purposes of this chapter, the Secretary is
authorized to establish in the Treasury of the United States an
Emergency Homeowners' Relief Fund (hereinafter in this chapter referred
to as the ''fund'') which shall be available to the Secretary without
fiscal year limitation --
(1) for making payments in connection with defaulted loans or
advances of credit insured under section 2704 of this title;
(2) for making emergency mortgage relief payments under section 2705
of this title;
(3) to pay such administrative expenses (or portion of such expenses)
of carrying out the provisions of this chapter as the Secretary may deem
necessary.
(b) The fund shall be credited with --
(1) all amounts received by the Secretary as premium charges for
insurance or as repayment for emergency mortgage relief payments under
this chapter and all receipts, earnings, collections, or proceeds
derived from any claim or other assets acquired by the Secretary under
this Act; and
(2) such amounts as may be appropriated for the purposes of this
chapter.
(Pub. L. 94-50, title I, 107, July 2, 1975, 89 Stat. 252; Pub. L.
98-479, title II, 204(m)(1), Oct. 17, 1984, 98 Stat. 2234.)
This Act, referred to in subsec. (b)(1), is Pub. L. 94-50, July 2,
1975, 89 Stat. 249, as amended, known as the Emergency Housing Act of
1975, which in addition to enacting this chapter, amended sections
1723e, 1723e note and 1735b of this title, and sections 1452 and 4106 of
Title 42, The Public Health and Welfare. For complete classification of
this Act to the Code, see Short Title note set out under section 2701 of
this title and Tables.
1984 -- Subsec. (a). Pub. L. 98-479, 204(m)(1)(A), (B), redesignated
subsec. (a)(1) as subsec. (a) and subpars. (A), (B), and (C) as pars.
(1), (2), and (3), respectively.
Subsec. (b). Pub. L. 98-479, 204(m)(1)(C), (D), redesignated subsec.
(a)(2) as subsec. (b) and subpars. (A) and (B) as pars. (1) and (2),
respectively.
12 USC 2707. Authority of Secretary
TITLE 12 -- BANKS AND BANKING
(a) Rules and regulations
The Secretary is authorized to make such rules and regulations as may
be necessary to carry out the provisions of this chapter.
(b) Payment of expenses and charges relating to acquisition,
handling, improvement, or disposal of real and personal property
Notwithstanding any other provision of law relating to the
acquisition, handling, improvement, or disposal of real or other
property by the United States, the Secretary shall have power, for the
protection of the interest of the fund authorized under this chapter, to
pay out of such fund all expenses or charges in connection with the
acquisition, handling, improvement, or disposal of any property, real or
personal, acquired by the Secretary as a result of recoveries under
security, subrogation, or other rights.
(c) Powers with respect to property rights held by Secretary
In the performance of, with respect to, the functions, powers, and
duties vested in the Secretary by this chapter, the Secretary shall --
(1) have the power, notwithstanding any other provision of law,
whether before or after default, to provide by contract or otherwise for
the extinguishment upon default of any redemption, equitable, legal, or
other right, title in any mortgage, deed, trust, or other instrument
held by or held on behalf of the Secretary under the provisions of this
chapter; and
(2) have the power to foreclose on any property or commence any
action to protect or enforce any right conferred upon the Secretary by
law, contract, or other agreement, and bid for and purchase at any
foreclosure or other sale any property in connection with which
assistance has been provided pursuant to this chapter. In the event of
any such acquisition, the Secretary may, notwithstanding any other
provision of law relating to the acquisition, handling, or disposal of
real property by the United States, complete, remodel and convert,
dispose of, lease, and otherwise deal with, such property.
Notwithstanding any other provision of law, the Secretary also shall
have power to pursue to final collection by way of compromise or
otherwise all claims acquired by him in connection with any security,
subrogation, or other rights obtained by him in administering this
chapter.
(Pub. L. 94-50, title I, 108, July 2, 1975, 89 Stat. 252.)
12 USC 2708. Authorization of appropriations; limitations; expiration
date for loans and advances of credit
TITLE 12 -- BANKS AND BANKING
(a) There are authorized to be appropriated for purposes of this
chapter such sums as may be necessary, except that the funds authorized
to be appropriated for section 2705 of this title shall not exceed
$500,000,000. Any amounts so appropriated shall remain available until
expended.
(b) No loans or advance of credit shall be insured and no emergency
mortgage relief payments made under this chapter after September 30,
1977, except if such loan or advance or such payments are made with
respect to a mortgagor receiving the benefit of a loan or advance
insured, or emergency mortgage relief payments made, under this chapter
on such date.
(Pub. L. 94-50, title I, 109, July 2, 1975, 89 Stat. 253; Pub. L.
94-375, 13(a), Aug. 3, 1976, 90 Stat. 1075.)
1976 -- Subsec. (b). Pub. L. 94-375 substituted ''September 30,
1977'' for ''June 30, 1976''.
12 USC 2709. Waiver and relaxation by institutions and approved
mortgagees of limitations with respect to mortgage delinquencies;
notification to Federal supervisory agency prior to foreclosure
proceedings
TITLE 12 -- BANKS AND BANKING
Each Federal supervisory agency with respect to financial
institutions subject to its jurisdiction, and the Secretary, with
respect to other approved mortgagees, shall (1) prior to October 1,
1977, take appropriate action, not inconsistent with laws relating to
the safety or soundness of such institutions or mortgagee, as the case
may be, to waive or relax limitations pertaining to the operations of
such institutions or mortgagees with respect to mortgage delinquencies
in order to cause or encourage forebearance in residential mortgage loan
foreclosures, and (2) until one year from July 2, 1975, request each
such institution or mortgagee to notify that Federal supervisory agency,
the Secretary, and the mortgagor, at least thirty days prior to
instituting foreclosure proceedings in connection with any mortgage
loan. As used in this chapter the term ''Federal supervisory agency''
means the Board of Governors of the Federal Reserve System, the Board of
Directors of the Federal Deposit Insurance Corporation, the Comptroller
of the Currency, the Federal Home Loan Bank Board, the Federal Savings
and Loan Insurance Corporation, and the National Credit Union
Administration.
(Pub. L. 94-50, title I, 110, July 2, 1975, 89 Stat. 253; Pub. L.
94-375, 13(b), Aug. 3, 1976, 90 Stat. 1075; Pub. L. 98-479, title II,
204(m)(2), Oct. 17, 1984, 98 Stat. 2234.)
1984 -- Pub. L. 98-479 struck out subsection ''(a)'' designation.
1976 -- Subsec. (a). Pub. L. 94-375 substituted ''Each'' for ''Until
one year from July 2, 1975, each'', and inserted ''prior to October 1,
1977'' after ''(1)'', and ''until one year from July 2, 1975'' after
''(2)''.
Federal Home Loan Bank Board and Federal Savings and Loan Insurance
Corporation abolished and functions transferred, see sections 401 to 406
of Pub. L. 101-73, set out as a note under section 1437 of this title.
12 USC 2710. Reports to Congress; time; contents
TITLE 12 -- BANKS AND BANKING
Within sixty days after July 2, 1975, and within each sixty-day
period thereafter prior to October 1, 1977, the Secretary shall make a
report to the Congress on (1) the current rate of delinquencies and
foreclosures in the housing market areas of the country which should be
of immediate concern if the purposes of this chapter is to be achieved;
(2) the extent of, and prospect for continuance of, voluntary
forebearance by mortgagees in such housing market areas; (3) actions
being taken by governmental agencies to encourage forebearance by
mortgagees in such housing market areas; (4) actions taken and actions
likely to be taken with respect to making assistance under this chapter
available to alleviate hardships resulting from any serious rates of
delinquencies and foreclosures; and (5) the current default status and
projected default trends with respect to mortgages covering multifamily
properties with special attention to mortgages insured under the various
provisions of the National Housing Act (12 U.S.C. 1701 et seq.) and with
recommendations on how such defaults and prospective defaults may be
cured or avoided in a manner which, while giving weight to the financial
interests of the United States, takes into full consideration the urgent
needs of the many low- and moderate-income families that currently
occupy such multifamily properties.
(Pub. L. 94-50, title I, 111, July 2, 1975, 89 Stat. 253; Pub. L.
94-375, 13(c), Aug. 3, 1976, 90 Stat. 1075.)
The National Housing Act, referred to in text, is act June 27, 1934,
ch. 847, 48 Stat. 1246, as amended, which is classified principally to
chapter 13 ( 1701 et seq.) of this title. For complete classification
of this Act to the Code, see section 1701 of this title and Tables.
1976 -- Pub. L. 94-375 substituted ''October 1, 1977'' for ''July 1,
1976''.
12 USC 2711. Nonapplicability of other laws
TITLE 12 -- BANKS AND BANKING
Notwithstanding any provision of law which limits the nature, amount,
term, form, or rate of interest, or the nature, amount, or form of
security of loans or advances of credit, loans, or advances of credit
may be made in accordance with the provisions of this chapter without
regard to such provision of law.
(Pub. L. 94-50, title I, 112, July 2, 1975, 89 Stat. 254.)
12 USC 2712. Federal Deposit Insurance Corporation advances to insured
banks
TITLE 12 -- BANKS AND BANKING
Notwithstanding any other provision of law, the Federal Deposit
Insurance Corporation is authorized, upon such terms and conditions as
the Corporation may prescribe, to make such advances to any insured bank
as the Corporation determines may be necessary or appropriate to
facilitate participation by such bank in the program authorized by this
chapter. For the purpose of obtaining such funds as it determines are
necessary for such advances, the Corporation may borrow from the
Treasury as authorized in section 1824 of this title, and the Secretary
of the Treasury is authorized and directed to make loans to the
Corporation for such purpose in the same manner as loans may be made for
insurance purposes under such section, subject to the maximum limitation
on outstanding aggregate loans there provided.
(Pub. L. 94-50, title I, 113, July 2, 1975, 89 Stat. 254.)
12 USC CHAPTER 29 -- HOME MORTGAGE DISCLOSURE
TITLE 12 -- BANKS AND BANKING
Sec.
2801. Congressional findings and declaration of purpose.
(a) Findings of Congress.
(b) Purpose of chapter.
(c) Construction of chapter.
2802. Definitions.
2803. Maintenance of records and public disclosure.
(a) Duty of depository institutions; nature and content of
information.
(b) Itemization of loan data.
(c) Period of maintenance.
(d) Duration of disclosure requirements.
(e) Format for disclosures.
(f) Data disclosure system; operation, etc.
(g) Exceptions.
(h) Submission to agencies.
(i) Exemption from certain disclosure requirements.
2804. Enforcement.
(a) Regulations.
(b) Powers of certain other agencies.
(c) Violations of this chapter deemed violations of certain other
provisions.
2805. Relation to State laws.
2806. Research and improved methods; authorization of
appropriations; recommendations to Congressional committees.
2807. Report.
2808. Effective date.
2809. Compilation of aggregate data.
(a) Commencement; scope of data and tables.
(b) Staff and data processing resources.
(c) Availability to public.
2810. Disclosure by Secretary; commencement, scope, etc.
2811. Repealed.
12 USC 2801. Congressional findings and declaration of purpose
TITLE 12 -- BANKS AND BANKING
(a) Findings of Congress
The Congress finds that some depository institutions have sometimes
contributed to the decline of certain geographic areas by their failure
pursuant to their chartering responsibilities to provide adequate home
financing to qualified applicants on reasonable terms and conditions.
(b) Purpose of chapter
The purpose of this chapter is to provide the citizens and public
officials of the United States with sufficient information to enable
them to determine whether depository institutions are filling their
obligations to serve the housing needs of the communities and
neighborhoods in which they are located and to assist public officials
in their determination of the distribution of public sector investments
in a manner designed to improve the private investment environment.
(c) Construction of chapter
Nothing in this chapter is intended to, nor shall it be construed to,
encourage unsound lending practices or the allocation of credit.
(Pub. L. 94-200, title III, 302, Dec. 31, 1975, 89 Stat. 1125.)
Section 301 of title III of Pub. L. 94-200 provided that: ''This
title (this chapter) may be cited as the 'Home Mortgage Disclosure Act
of 1975'.''
12 USC 2802. Definitions
TITLE 12 -- BANKS AND BANKING
For purposes of this chapter --
(1) the term ''mortgage loan'' means a loan which is secured by
residential real property or a home improvement loan;
(2) the term ''depository institution'' --
(A) means --
(i) any bank (as defined in section 1813(a)(1) of this title);
(ii) any savings association (as defined in section 1813(b)(1) of
this title); and
(iii) any credit union,
which makes federally related mortgage loans as determined by the
Board; and
(B) includes any other lending institution (as defined in paragraph
(4)) other than any institution described in subparagraph (A);
(3) the term ''completed application'' means an application in which
the creditor has received the information that is regularly obtained in
evaluating applications for the amount and type of credit requested;
(4) the term ''other lending institutions'' means any person engaged
for profit in the business of mortgage lending;
(5) the term ''Board'' means the Board of Governors of the Federal
Reserve System; and
(6) the term ''Secretary'' means the Secretary of Housing and Urban
Development.
(Pub. L. 94-200, title III, 303, Dec. 31, 1975, 89 Stat. 1125; Pub.
L. 100-242, title V, 565(a)(1), Feb. 5, 1988, 101 Stat. 1945; Pub. L.
101-73, title XII, 1211(d), (e), Aug. 9, 1989, 103 Stat. 525.)
1989 -- Par. (2). Pub. L. 101-73, 1211(d), amended par. (2)
generally. Prior to amendment, par. (2) read as follows: ''the term
'depository institution' means any commercial bank, savings bank,
savings and loan association, building and loan association, homestead
association (including cooperative banks) or credit union which makes
federally related mortgage loans as determined by the Board, mortgage
banking subsidiary of a bank holding company or savings and loan holding
company, or savings and loan service corporation that originates or
purchases mortgage loans;''.
Pars. (3) to (6). Pub. L. 101-73, 1211(e), added pars. (3) and (4)
and redesignated former pars. (3) and (4) as (5) and (6), respectively.
1988 -- Par. (2). Pub. L. 100-242 struck out ''or'' before
''homestead association'' and inserted before semicolon at end '',
mortgage banking subsidiary of a bank holding company or savings and
loan holding company, or savings and loan service corporation that
originates or purchases mortgage loans''.
Section 1211(k) of Pub. L. 101-73 provided that: ''The amendments
made by this section (amending this section and sections 2803, 2804,
2807, and 2810 of this title) shall apply to each calendar year
beginning after December 31, 1989.''
Section 565(a)(4) of Pub. L. 100-242, as amended by Pub. L.
100-628, title X, 1087(a), Nov. 7, 1988, 102 Stat. 3280, provided
that: ''The amendments made by this subsection (amending sections 2802,
2803, and 2810 of this title) shall be applicable to the portion of
calendar year 1988 that begins August 19, 1988, and to each calendar
year beginning after December 31, 1988.''
12 USC 2803. Maintenance of records and public disclosure
TITLE 12 -- BANKS AND BANKING
(a) Duty of depository institutions; nature and content of
information
(1) Each depository institution which has a home office or branch
office located within a primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan statistical
area that is not comprised of designated primary metropolitan
statistical areas, as defined by the Department of Commerce shall
compile and make available, in accordance with regulations of the Board,
to the public for inspection and copying at the home office, and at
least one branch office within each primary metropolitan statistical
area, metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas in which the depository institution has
an office the number and total dollar amount of mortgage loans which
were (A) originated (or for which the institution received completed
applications), or (B) purchased by that institution during each fiscal
year (beginning with the last full fiscal year of that institution which
immediately preceded the effective date of this chapter).
(2) The information required to be maintained and made available
under paragraph (1) shall also be itemized in order to clearly and
conspicuously disclose the following:
(A) The number and dollar amount for each item referred to in
paragraph (1), by census tracts for mortgage loans secured by property
located within any county with a population of more than 30,000, within
that primary metropolitan statistical area, metropolitan statistical
area, or consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas,
otherwise, by county, for mortgage loans secured by property located
within any other county within that primary metropolitan statistical
area, metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas.
(B) The number and dollar amount for each item referred to in
paragraph (1) for all such mortgage loans which are secured by property
located outside that primary metropolitan statistical area, metropolitan
statistical area, or consolidated metropolitan statistical area that is
not comprised of designated primary metropolitan statistical areas.
For the purpose of this paragraph, a depository institution which
maintains offices in more than one primary metropolitan statistical
area, metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas shall be required to make the information
required by this paragraph available at any such office only to the
extent that such information relates to mortgage loans which were
originated or purchased (or for which completed applications were
received) by an office of that depository institution located in the
primary metropolitan statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas in which the office
making such information available is located. For purposes of this
paragraph, other lending institutions shall be deemed to have a home
office or branch office within a primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan statistical
area that is not comprised of designated primary metropolitan
statistical areas if such institutions have originated or purchased or
received completed applications for at least 5 mortgage loans in such
area in the preceding calendar year.
(b) Itemization of loan data
Any item of information relating to mortgage loans required to be
maintained under subsection (a) of this section shall be further
itemized in order to disclose for each such item --
(1) the number and dollar amount of mortgage loans which are insured
under title II of the National Housing Act (12 U.S.C. 1707 et seq.) or
under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) or
which are guaranteed under chapter 37 of title 38;
(2) the number and dollar amount of mortgage loans made to mortgagors
who did not, at the time of execution of the mortgage, intend to reside
in the property securing the mortgage loan;
(3) the number and dollar amount of home improvement loans; and
(4) the number and dollar amount of mortgage loans and completed
applications involving mortgagors or mortgage applicants grouped
according to census tract, income level, racial characteristics, and
gender.
(c) Period of maintenance
Any information required to be compiled and made available under this
section shall be maintained and made available for a period of five
years after the close of the first year during which such information is
required to be maintained and made available.
(d) Duration of disclosure requirements
Notwithstanding the provisions of subsection (a)(1) of this section,
data required to be disclosed under this section for 1980 and thereafter
shall be disclosed for each calendar year. Any depository institution
which is required to make disclosures under this section but which has
been making disclosures on some basis other than a calendar year basis
shall make available a separate disclosure statement containing data for
any period prior to calendar year 1980 which is not covered by the last
full year report prior to the 1980 calendar year report.
(e) Format for disclosures
Subject to subsection (h) of this section, the Board shall prescribe
a standard format for the disclosures required under this section.
(f) Data disclosure system; operation, etc.
The Federal Financial Institutions Examination Council, in
consultation with the Secretary, shall implement a system to facilitate
access to data required to be disclosed under this section. Such system
shall include arrangements for a central depository of data in each
primary metropolitan statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas. Disclosure statements
shall be made available to the public for inspection and copying at such
central depository of data for all depository institutions which are
required to disclose information under this section (or which are
exempted pursuant to section 2805(b) of this title) and which have a
home office or branch office within such primary metropolitan
statistical area, metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of designated
primary metropolitan statistical areas.
(g) Exceptions
The requirements of subsections (a) and (b) of this section shall not
apply with respect to mortgage loans that are --
(1) made (or for which completed applications are received) by any
mortgage banking subsidiary of a bank holding company or savings and
loan holding company or by any savings and loan service corporation that
originates or purchases mortgage loans; and
(2) approved (or for which completed applications are received) by
the Secretary for insurance under title I or II of the National Housing
Act (12 U.S.C. 1702 et seq., 1707 et seq.).
(h) Submission to agencies
The data required to be disclosed under subsection (b)(4) of this
section shall be submitted to the appropriate agency for each
institution reporting under this chapter. Notwithstanding the
requirement of subsection (a)(2)(A) of this section for disclosure by
census tract, the Board, in cooperation with other appropriate
regulators, including --
(1) the Office of the Comptroller of the Currency for national banks
and Federal branches and Federal agencies of foreign banks;
(2) the Director of the Office of Thrift Supervision for savings
associations;
(3) the Federal Deposit Insurance Corporation for banks insured by
the Federal Deposit Insurance Corporation (other than members of the
Federal Reserve System), mutual savings banks, insured State branches of
foreign banks, and any other depository institution described in section
2802(2)(A) of this title which is not otherwise referred to in this
paragraph;
(4) the National Credit Union Administration Board for credit unions;
and
(5) the Secretary of Housing and Urban Development for other lending
institutions not regulated by the agencies referred to in paragraphs (1)
through (4),
shall develop regulations prescribing the format for such
disclosures, the method for submission of the data to the appropriate
regulatory agency, and the procedures for disclosing the information to
the public. These regulations shall also require the collection of data
required to be disclosed under subsection (b)(4) of this section with
respect to loans sold by each institution reporting under this chapter,
and, in addition, shall require disclosure of the class of the purchaser
of such loans. Any reporting institution may submit in writing to the
appropriate agency such additional data or explanations as it deems
relevant to the decision to originate or purchase mortgage loans.
(i) Exemption from certain disclosure requirements
The requirements of subsection (b)(4) of this section shall not apply
with respect to any depository institution described in section
2802(2)(A) of this title which has total assets, as of the most recent
full fiscal year of such institution, of $30,000,000 or less.
(Pub. L. 94-200, title III, 304, Dec. 31, 1975, 89 Stat. 1125; Pub.
L. 96-399, title III, 340(a), Oct. 8, 1980, 94 Stat. 1657; Pub. L.
98-181, title VII, 701(a), Nov. 30, 1983, 97 Stat. 1266; Pub. L.
100-242, title V, 565(a)(2), 570(h), Feb. 5, 1988, 101 Stat. 1945, 1950;
Pub. L. 101-73, title XII, 1211(a)-(c)(2)(C), (f), (i), (j), Aug. 9,
1989, 103 Stat. 524-526; Pub. L. 102-242, title II, 212(a)( 1), Dec.
19, 1991, 105 Stat. 2299.)
For the effective date of this chapter, referred to in subsec. (a)(
1), see section 2808 of this title.
The National Housing Act, referred to in subsecs. (b)(1) and (g)(
1), is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Titles I
and II of the National Housing Act are classified generally to
subchapters I ( 1702 et seq.) and II ( 1707 et seq.), respectively, of
chapter 13 of this title. For complete classification of this Act to
the Code, see section 1701 of this title and Tables.
The Housing Act of 1949, referred to in subsec. (b)(1), is act July
15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the Housing
Act of 1949 is classified generally to subchapter III ( 1471 et seq.) of
chapter 8A of Title 42, The Public Health and Welfare. For complete
classification of this Act to the Code, see Short Title note set out
under section 1441 of Title 42 and Tables.
1991 -- Subsec. (h)(1). Pub. L. 102-242, 212(a)(1)(A), added par.
(1) and struck out former par. (1) which read as follows: ''the
Comptroller of the Currency for national banks;''.
Subsec. (h)(3). Pub. L. 102-242, 212(a)(1)(B), added par. (3) and
struck out former par. (3) which read as follows: ''the Federal
Deposit Insurance Corporation for banks insured by the Federal Deposit
Insurance Corporation (other than members of the Federal Reserve
System), mutual savings banks, and any other depository institution
described in section 2802(2)(A) of this title which is not otherwise
referred to in this paragraph;''.
1989 -- Subsec. (a)(1). Pub. L. 101-73, 1211(c)(1), inserted ''(or
for which the institution received completed applications)'' after
''originated''.
Subsec. (a)(2). Pub. L. 101-73, 1211(c)(2)(A), inserted ''(or for
which completed applications were received)'' after ''originated or
purchased'' in last sentence.
Pub. L. 101-73, 1211(f), inserted at end ''For purposes of this
paragraph, other lending institutions shall be deemed to have a home
office or branch office within a primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan statistical
area that is not comprised of designated primary metropolitan
statistical areas if such institutions have originated or purchased or
received completed applications for at least 5 mortgage loans in such
area in the preceding calendar year.''
Subsec. (b)(4). Pub. L. 101-73, 1211(a), added par. (4).
Subsec. (e). Pub. L. 101-73, 1211(i), substituted ''Subject to
subsection (h) of this section, the Board'' for ''The Board''.
Subsec. (g)(1). Pub. L. 101-73, 1211(c)(2)(B), inserted ''(or for
which completed applications are received)'' after ''made''.
Subsec. (g)(2). Pub. L. 101-73, 1211(c)(2)(C), inserted ''(or for
which completed applications are received)'' after ''approved''.
Subsec. (h). Pub. L. 101-73, 1211(b), added subsec. (h).
Subsec. (i). Pub. L. 101-73, 1211(j), added subsec. (i).
1988 -- Subsec. (a)(1). Pub. L. 100-242, 570(h), substituted ''at
least one branch'' for ''at at least one branch''.
Subsec. (g). Pub. L. 100-242, 565(a)(2), added subsec. (g).
1983 -- Subsecs. (a), (f). Pub. L. 98-181 substituted ''primary
metropolitan statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas'' for ''standard
metropolitan statistical area'' wherever appearing.
1980 -- Subsec. (a)(1). Pub. L. 96-399, 340(a)(1), substituted
''Department of Commerce'' for ''Office of Management and Budget''.
Subsec. (a)(2)(A). Pub. L. 96-399, 340(a)(2), revised applicable
factors so as to include mortgage loans in a census tract, or by a
county, and exclude readily available and reasonably costing census
tracts, or by ZIP code.
Subsecs. (d) to (f). Pub. L. 96-399, 340(a)(3), added subsecs. (d)
to (f).
Amendment by Pub. L. 101-73 applicable to each calendar year
beginning after Dec. 31, 1989, see section 1211(k) of Pub. L. 101-73,
set out as a note under section 2802 of this title.
Amendment by section 565(a)(2) of Pub. L. 100-242 applicable to the
portion of calendar year 1988 that begins Aug. 19, 1988, and to each
calendar year beginning after Dec. 31, 1988, see section 565(a)(4) of
Pub. L. 100-242, as amended, set out as a note under section 2802 of
this title.
Evaluation of status and effectiveness of data collection and
analysis systems involving fair lending, etc., and report thereof, see
section 340(e) of Pub. L. 96-399, set out as a note under section 3305
of this title.
12 USC 2804. Enforcement
TITLE 12 -- BANKS AND BANKING
(a) Regulations
The Board shall prescribe such regulations as may be necessary to
carry out the purposes of this chapter. These regulations may contain
such classifications, differentiations, or other provisions, and may
provide for such adjustments and exceptions for any class of
transactions, as in the judgment of the Board are necessary and proper
to effectuate the purposes of this chapter, and prevent circumvention or
evasion thereof, or to facilitate compliance therewith.
(b) Powers of certain other agencies
Compliance with the requirements imposed under this chapter shall be
enforced under --
(1) section 1818 of this title, in the case of --
(A) national banks, and Federal branches and Federal agencies of
foreign banks, by the Office of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national
banks), branches and agencies of foreign banks (other than Federal
branches, Federal agencies, and insured State branches of foreign
banks), commercial lending companies owned or controlled by foreign
banks, and organizations operating under section 25 or 25(a) /1/ of the
Federal Reserve Act (12 U.S.C. 601 et seq., 611 et seq.), by the Board;
and
(C) banks insured by the Federal Deposit Insurance Corporation (other
than members of the Federal Reserve System), mutual savings banks as
defined in section 1813(f) of this title, insured State branches of
foreign banks, and any other depository institution not referred to in
this paragraph or paragraph (2) or (3) of this subsection, by the Board
of Directors of the Federal Deposit Insurance Corporation;
(2) section 1818 of this title, by the Director of the Office of
Thrift Supervision, in the case of a savings association the deposits of
which are insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the
Administrator of the National Credit Union Administration with respect
to any credit union; and
(4) other lending institutions, by the Secretary of Housing and Urban
Development.
The terms used in paragraph (1) that are not defined in this chapter
or otherwise defined in section 1813(s) of this title shall have the
meaning given to them in section 3101 of this title.
(c) Violations of this chapter deemed violations of certain other
provisions
For the purpose of the exercise by any agency referred to in
subsection (b) of this section of its powers under any Act referred to
in that subsection, a violation of any requirement imposed under this
chapter shall be deemed to be a violation of a requirement imposed under
that Act. In addition to its powers under any provision of law
specifically referred to in subsection (b) of this section, each of the
agencies referred to in that subsection may exercise, for the purpose of
enforcing compliance with any requirement imposed under this chapter,
any other authority conferred on it by law.
(Pub. L. 94-200, title III, 305, Dec. 31, 1975, 89 Stat. 1126; Pub.
L. 101-73, title VII, 744(p)(1), title XII, 1211(g), Aug. 9, 1989, 103
Stat. 440, 526; Pub. L. 102-242, title II, 212(a)(2), Dec. 19, 1991,
105 Stat. 2299.)
Section 25 of the Federal Reserve Act, referred to in subsec. (b)(
1)(B), is classified to subchapter I ( 601 et seq.) of chapter 6 of this
title. Section 25(a) of the Federal Reserve Act, which is classified to
subchapter II ( 611 et seq.) of chapter 6 of this title, was renumbered
section 25A of that act by Pub. L. 102-242, title I, 142(e)(2), Dec.
19, 1991, 105 Stat. 2281.
The Federal Credit Union Act, referred to in subsec. (b)(3), is act
June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is classified
generally to chapter 14 ( 1751 et seq.) of this title. For complete
classification of this Act to the Code, see section 1751 of this title
and Tables.
1991 -- Subsec. (b). Pub. L. 102-242, 212(a)(2)(B), inserted at end
''The terms used in paragraph (1) that are not defined in this chapter
or otherwise defined in section 1813(s) of this title shall have the
meaning given to them in section 3101 of this title.''
Subsec. (b)(1). Pub. L. 102-242, 212(a)(2)(A), added par. (1) and
struck out former par. (1) which read as follows: ''section 1818 of
this title, in the case of --
''(A) national banks, by the Comptroller of the Currency;
''(B) member banks of the Federal Reserve System, other than national
banks, by the Board;
''(C) banks insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System) and mutual savings
banks as defined in section 1813(f) of this title and any other
depository institution not referred to in this paragraph or paragraph
(2) or (3) of this subsection, by the Board of Directors of the Federal
Deposit Insurance Corporation;''.
1989 -- Subsec. (b)(2). Pub. L. 101-73, 744(p)(1), amended par. (2)
generally. Prior to amendment, par. (2) read as follows: ''section
1464(d) of this title, section 1730 of this title, and sections 1426(i)
and 1437 of this title, by the Federal Home Loan Bank Board (acting
directly or through the Federal Savings and Loan Insurance Corporation)
in the case of any institution subject to any of those provisions;
and''.
Subsec. (b)(4). Pub. L. 101-73, 1211(g), added par. (4).
Amendment by section 1211(g) of Pub. L. 101-73 applicable to each
calendar year beginning after Dec. 31, 1989, see section 1211(k) of
Pub. L. 101-73, set out as a note under section 2802 of this title.
/1/ See References in Text note below.
12 USC 2805. Relation to State laws
TITLE 12 -- BANKS AND BANKING
(a) This chapter does not annul, alter, or affect, or exempt any
State chartered depository institution subject to the provisions of this
chapter from complying with the laws of any State or subdivision thereof
with respect to public disclosure and recordkeeping by depositor
institutions, except to the extent that those laws are inconsistent with
any provision of this chapter, and then only to the extent of the
inconsistency. The Board is authorized to determine whether such
inconsistencies exist. The Board may not determine that any such law is
inconsistent with any provision of this chapter if the Board determines
that such law requires the maintenance of records with greater
geographic or