Truth in Lending: (r) College card agreements
(1) Definitions
For purposes of this subsection, the following definitions shall apply:
(A) College affinity card
(1) Definitions
For purposes of this subsection, the following definitions shall apply:
(A) College affinity card
In the case of any open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling, the creditor shall make the following disclosures in accordance with subsection (b):
(1) Fixed annual percentage rate
Each annual percentage rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest.
(1) Time of disclosure
(A) In general
The disclosures required under subsection (a) with respect to any open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling and the pamphlet required under subsection (e) shall be provided to any consumer at the time the creditor distributes an application to establish an account under such plan to such consumer.
In the case of an application to open an account under any open end consumer credit plan described in subsection (a) which is provided to a consumer by any person other than the creditor—
(1) such person shall provide such consumer with—
(A) the disclosures required under subsection (a) with respect to such plan, in accordance with subsection (b); and
(B) the pamphlet required under subsection (e); or
For purposes of this section and sections 1647 and 1665b of this title, the term “principal dwelling” includes any second or vacation home of the consumer.
In addition to the disclosures required under subsection (a) with respect to an application to open an account under any open end consumer credit plan described in such subsection, the creditor or other person providing such disclosures to the consumer shall provide—
(1) a pamphlet published by the Bureau pursuant to section 4 of the Home Equity Consumer Protection Act of 1988;19 or
[Pub. L. No. 90-321, as added Pub. L. No. 100-709, 102 Stat. 4725 (Nov. 23, 1988), as amended Pub. L. No. 109-8, 119 Stat. 208 (Apr. 20, 2005); Pub. L. No. 111-203, § 1100A, 124 Stat. 1376, 2107 (July 21, 2010)]
For each consumer credit transaction other than under an open end credit plan, the creditor shall disclose each of the following items, to the extent applicable:
(1) The identity of the creditor required to make disclosure.
(1) Except as otherwise provided in this part, the disclosures required under subsection (a) shall be made before the credit is extended. Except for the disclosures required by subsection (a)(1) of this section, all disclosures required under subsection (a) and any disclosure provided for in subsection (b), (c), or (d) of section 1605 of this title shall be conspicuously segregated from all other terms, data, or information provided in connection with a transaction, including any computations or itemization.
(1) If a creditor receives a purchase order by mail or telephone without personal solicitation, and the cash price and the total sale price and the terms of financing, including the annual percentage rate, are set forth in the creditor’s catalog or other printed material distributed to the public, then the disclosures required under subsection (a) may be made at any time not later than the date the first payment is due.
If a consumer credit sale is one of a series of consumer credit sales transactions made pursuant to an agreement providing for the addition of the deferred payment price of that sale to an existing outstanding balance, and the person to whom the credit is extended has approved in writing both the annual percentage rate or rates and the method of computing the finance charge or charges, and the creditor retains no security interest in any property as to which he has received payments aggregating the amount of the sales price including any finance charges attributable th
(1) Disclosures required in private education loan applications and solicitations
In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously—
(A) the potential range of rates of interest applicable to the private education loan;
(1) In general
The creditor, assignee, or servicer with respect to any residential mortgage loan shall transmit to the obligor, for each billing cycle, a statement setting forth each of the following items, to the extent applicable, in a conspicuous and prominent manner:
(A) The amount of the principal obligation under the mortgage.
(B) The current interest rate in effect for the loan.
[Pub. L. No. 90-321, 82 Stat. 155 (May 29, 1968); Pub. L. No. 96-221, 94 Stat. 178 (Mar. 31, 1980); Pub. L. No. 104-208, 110 Stat. 3009 (Sept. 30, 1996); Pub. L. No. 109-8, 119 Stat. 209 (Apr. 20, 2005); Pub. L. No. 110-289, div. B, tit. V, § 2502(a), 122 Stat. 2855, 2857 (July 30, 2008); Pub. L. No. 110-315, tit. X, § 1021(a), 122 Stat. 3483, 3484 (Aug. 14, 2008); Pub. L. No. 110-343, div. A, tit. I, § 130(a), 122 Stat. 3797 (Oct. 3, 2008); Pub. L. No. 111-203, §§ 1100A, 1420, 1465, 124 Stat.
(a) Hybrid adjustable rate mortgages defined
For purposes of this section, the term “hybrid adjustable rate mortgage” means a consumer credit transaction secured by the consumer’s principal residence with a fixed interest rate for an introductory period that adjusts or resets to a variable interest rate after such period.
(b) Notice of reset and alternatives
(1) Specific disclosures
In addition to other disclosures required under this subchapter, for each mortgage referred to in section 1602(aa) [sic]20 of this title, the creditor shall provide the following disclosures in conspicuous type size:
(A) “You are not required to complete this agreement merely because you have received these disclosures or have signed a loan application.”
(1) In general
The disclosures required by this section shall be given not less than 3 business days prior to consummation of the transaction.
(2) New disclosures required
(A) In general
(1) In general
(A) Limitation on terms
A mortgage referred to in section 1602(aa) [sic]23 of this title may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal before the date on which the principal is due.
(B) Construction
A mortgage referred to in section 1602(aa) [sic]24 of this title may not provide for an interest rate applicable after default that is higher than the interest rate that applies before default.
No high-cost mortgage may contain a scheduled payment that is more than twice as large as the average of earlier scheduled payments. This subsection shall not apply when the payment schedule is adjusted to the seasonal or irregular income of the consumer.
A mortgage referred to in section 1602(aa) [sic]26 of this title may not include terms under which the outstanding principal balance will increase at any time over the course of the loan because the regular periodic payments do not cover the full amount of interest due.
A mortgage referred to in section 1602(aa) [sic]27 of this title may not include terms under which more than 2 periodic payments required under the loan are consolidated and paid in advance from the loan proceeds provided to the consumer.
A creditor shall not engage in a pattern or practice of extending credit to consumers under mortgages referred to in section 1602(aa) [sic]28 of this title based on the consumers’ collateral without regard to the consumers’ repayment ability, including the consumers’ current and expected income, current obligations, and employment.
A creditor shall not make a payment to a contractor under a home improvement contract from amounts extended as credit under a mortgage referred to in section 1602(aa) [sic]29 of this title, other than—
(1) in the form of an instrument that is payable to the consumer or jointly to the consumer and the contractor; or
No creditor shall recommend or encourage default on an existing loan or other debt prior to and in connection with the closing or planned closing of a high-cost mortgage that refinances all or any portion of such existing loan or debt.