Search
Truth in Lending: (d) Duration of mandatory escrow or impound account
An escrow or impound account established pursuant to subsection (b) shall remain in existence for a minimum period of 5 years, beginning with the date of the consummation of the loan, unless and until—
(1) such borrower has sufficient equity in the dwelling securing the consumer credit transaction so as to no longer be required to maintain private mortgage insurance;
(2) such borrower is delinquent;
Truth in Lending: (e) Limited exemptions for loans secured by shares in a cooperative or in which an association must maintain a master insurance policy
Escrow accounts need not be established for loans secured by shares in a cooperative. Insurance premiums need not be included in escrow accounts for loans secured by dwellings or units, where the borrower must join an association as a condition of ownership, and that association has an obligation to the dwelling or unit owners to maintain a master policy insuring the dwellings or units.
Truth in Lending: (f) Clarification on escrow accounts for loans not meeting statutory test
For mortgages not covered by the requirements of subsection (b), no provision of this section shall be construed as precluding the establishment of an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to the property—
(1) on terms mutually agreeable to the parties to the loan;
Truth in Lending: (g) Administration of mandatory escrow or impound accounts
(1) In general
Except as may otherwise be provided for in this subchapter or in regulations prescribed by the Bureau, escrow or impound accounts established pursuant to subsection (b) shall be established in a federally insured depository institution or credit union.
(2) Administration
Truth in Lending: (h) Disclosures relating to mandatory escrow or impound account
In the case of any impound, trust, or escrow account that is required under subsection (b), the creditor shall disclose by written notice to the consumer at least 3 business days before the consummation of the consumer credit transaction giving rise to such account or in accordance with timeframes established in prescribed regulations the following information:
(1) The fact that an escrow or impound account will be established at consummation of the transaction.
Truth in Lending: (i) Definitions
For purposes of this section, the following definitions shall apply:
(1) Flood insurance
The term “flood insurance” means flood insurance coverage provided under the national flood insurance program pursuant to the National Flood Insurance Act of 1968.
(2) Hazard insurance
Truth in Lending: (j) Disclosure notice required for consumers who waive escrow services
(1) In general
If—
(A) an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to real property securing a consumer credit transaction is not established in connection with the transaction; or
Truth in Lending: Amendment History
[Pub. L. No. 111-203, §§ 1100A, 1461–1462, 124 Stat. 1376, 2107, 2178, 2181 (July 21, 2010); Pub. L. No. 114-94, 129 Stat. 1312 (Dec. 4, 2015); Pub. L. No. 115-174, tit. I, § 108, 132 Stat. 1304 (2018)]
Truth in Lending: Editor’s Note
[Editor’s Note.46]
Truth in Lending: (a) In general
It shall be unlawful, in extending credit or in providing any services for a consumer credit transaction secured by the principal dwelling of the consumer, to engage in any act or practice that violates appraisal independence as described in or pursuant to regulations prescribed under this section.
Truth in Lending: (b) Appraisal independence
For purposes of subsection (a), acts or practices that violate appraisal independence shall include—
Truth in Lending: (c) Exceptions
The requirements of subsection (b) shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, consumer, or any other person with an interest in a real estate transaction from asking an appraiser to undertake 1 or more of the following:
(1) Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.
Truth in Lending: (d) Prohibitions on conflicts of interest
No certified or licensed appraiser conducting, and no appraisal management company procuring or facilitating, an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer may have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal.
Truth in Lending: (e) Mandatory reporting
Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer who has a reasonable basis to believe an appraiser is failing to comply with the Uniform Standards of Professional Appraisal Practice, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the m
Truth in Lending: (f) No extension of credit
In connection with a consumer credit transaction secured by a consumer’s principal dwelling, a creditor who knows, at or before loan consummation, of a violation of the appraisal independence standards established in subsections (b) or (d) shall not extend credit based on such appraisal unless the creditor documents that the creditor has acted with reasonable diligence to determine that the appraisal does not materially misstate or misrepresent the value of such dwelling.
Truth in Lending: (g) Rules and interpretive guidelines
(1) In general
Truth in Lending: (h) Appraisal report portability
Consistent with the requirements of this section, the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau may jointly issue regulations that address the issue of appraisal report portability, including regulations that ensure the portability of the appraisal report between lenders for a consumer credit transaction secured by a 1-4 unit single family residence that is the principal dwelling of the consumer, or mortgage brokerage services for
Truth in Lending: (i) Customary and reasonable fee
(1) In general
Lenders and their agents shall compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as government agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known appraisal management companies.
Truth in Lending: (j) Sunset
Effective on the date the interim final regulations are promulgated pursuant to subsection (g), the Home Valuation Code of Conduct announced by the Federal Housing Finance Agency on December 23, 2008, shall have no force or effect.
Truth in Lending: (k) Penalties
(1) First violation
In addition to the enforcement provisions referred to in section 1640 of this title, each person who violates this section shall forfeit and pay a civil penalty of not more than $10,000 for each day any such violation continues.
(2) Subsequent violations
Truth in Lending: Amendment History
[Pub. L. No. 111-203, § 1472, 124 Stat. 1376, 2187 (July 21, 2010); Pub. L. No. 115-174, tit. I, § 102, 132 Stat. 1299 (2018)]
Truth in Lending: § 1639f. Requirements for prompt crediting of home loan payments [TILA § 129F]
(a) In general
In connection with a consumer credit transaction secured by a consumer’s principal dwelling, no servicer shall fail to credit a payment to the consumer’s loan account as of the date of receipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, except as required in subsection (b).
(b) Exception
Truth in Lending: § 1639g. Requests for payoff amounts of home loan [TILA § 129G]
A creditor or servicer of a home loan shall send an accurate payoff balance within a reasonable time, but in no case more than 7 business days, after the receipt of a written request for such balance from or on behalf of the borrower.
[Pub. L. No. 111-203, § 1464, 124 Stat. 1376, 2184 (July 21, 2010)]
Truth in Lending: § 1639h. Property appraisal requirements [TILA § 129H]
(a) In general
A creditor may not extend credit in the form of a higher-risk mortgage to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this section.
(b) Appraisal requirements
(1) Physical property visit