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Mortgage Lending: § 1024.17 Escrow accounts.

(a) General. This section sets out the requirements for an escrow account that a lender establishes in connection with a federally related mortgage loan. It sets limits for escrow accounts using calculations based on monthly payments and disbursements within a calendar year. If an escrow account involves biweekly or any other payment period, the requirements in this section shall be modified accordingly.

Mortgage Lending: § 1024.33 Mortgage servicing transfers.

(a) Servicing disclosure statement. Within three days (excluding legal public holidays, Saturdays, and Sundays) after a person applies for a reverse mortgage transaction, the lender, mortgage broker who anticipates using table funding, or dealer in a first-lien dealer loan shall provide to the person a servicing disclosure statement that states whether the servicing of the mortgage loan may be assigned, sold, or transferred to any other person at any time. Appendix MS-1 of this part contains a model form for the disclosures required under this paragraph (a).

Mortgage Lending: Appendix A to Part 1024—Instructions for Completing HUD-1 and HUD-1A Settlement Statements; Sample HUD-1 and HUD-1A Statements

The following are instructions for completing the HUD-1 settlement statement, required under section 4 of RESPA and 12 C.F.R. part 1024 (Regulation X) of the Bureau of Consumer Financial Protection (Bureau) regulations. This form is to be used as a statement of actual charges and adjustments paid by the borrower and the seller, to be given to the parties in connection with the settlement. The instructions for completion of the HUD-1 are primarily for the benefit of the settlement agents who prepare the statements and need not be transmitted to the parties as an integral part of the HUD-1.

Mortgage Lending: Appendix C to Part 1024—Instructions for Completing Good Faith Estimate (GFE) Form

The following are instructions for completing the GFE required under section 5 of RESPA and 12 C.F.R. § 1024.7 of the Bureau regulations. The standardized form set forth in this Appendix is the required GFE form and must be provided exactly as specified; provided, however, preparers may replace HUD’s OMB approval number listed on the form with the Bureau’s OMB approval number when they reproduce the GFE form.

Mortgage Lending: Listing of Provisions

Title 12—Banks and Banking

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Chapter X—Bureau of Consumer Financial Protection

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Part 1024—Real Estate Settlement Procedures Act (Regulation X)

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Supplement I to Part 1024—Official Bureau Interpretations

AUTHORITY: 12 U.S.C. §§ 2603–2605, 2607, 2609, 2617, 5512, 5532, 5581.

Fair Credit Reporting: 3.6.1.4 OFAC Alerts

Yet another example of a failure to provide all information in a consumer’s file (albeit perhaps difficult to privately redress) is Trans Union policy of not including information from the U.S.

Fair Credit Reporting: 3.6.1.5 Disclosure of Previously Reported Information

Consumer reports show the present status of a consumer’s file, and do not disclose the information that may have been provided to a user in the past. An important issue is whether CRAs are in fact required to disclose the content of such prior reports, because it is the prior reports that form the basis of a user’s adverse action.

Fair Credit Reporting: 3.6.1.6 Disclosure of Other Persons in Consumer’s File

The disclosure right is limited to information in the CRA’s files “on the consumer.”523 The consumer has no right to information on other individuals. However, if information that relates to other individuals is retained in a consumer’s files, that must be disclosed given the requirement that a “CRA must disclose all items in the consumer’s file.”524

Fair Credit Reporting: 3.6.1.1 Statutory Standard

With a limited number of exceptions, the FCRA requires that all information in the consumer’s file at the time of the consumer’s request must be provided to the consumer.466 The Act explicitly requires CRAs, upon request of the consumer, to “clearly and accurately disclose . . .

Fair Credit Reporting: 4.4.7.1 Generally

The FCRA mandates specific procedures when a CRA furnishes “items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer’s ability to obtain employment.”1065 This requirement applies only when the consumer report is furnished for employment purposes1066 and the public record information is adverse.

Fair Credit Reporting: 4.4.7.2 Election to Notify Consumer of Release of Public Record Information

The first option that a CRA can choose is to notify the consumer, at the time that public record information is released, that the CRA is furnishing public record information to a user, together with the name and address of the person to whom such information is being released.1081 This option is necessary for CRAs that generate their employment reports from a preexisting database rather than collect the data from court records on an as-needed basis.

Fair Credit Reporting: 4.4.7.3 Election to Establish Strict Procedures for Complete and Up-to-Date Public Record Information

The second option a CRA can elect is to maintain strict procedures to ensure that the public record information is both complete and up to date.1089 While section 1681k does not specifically use the term “accuracy,” some, but not all, courts have held that inaccurate information violates this section.1090 Compliance with this section is in addition to compliance with section 1681e(b).1091 Whether a defendant followed strict procedures is gene

Fair Credit Reporting: 4.4.7.4 Exemption for National Security Investigations

The procedures required for the reporting of adverse public record information for employment purposes does not apply in the case where a United States agency or department seeks the report, if the head of that agency or department makes a written finding.1116 The finding must state that the report is relevant to a national security investigation, the investigation is within the jurisdiction of the agency or department, and there is reason to believe that one of six conditions will occur, if the exemption does not apply.

Fair Credit Reporting: 4.3.5.2 How Errors Occur in Public Record Information

There are several ways that public record information in a consumer’s file can end up with errors. Just like information from furnishers, the source public record could itself contain an error.466 Consumer reporting agencies are not likely to discover and correct such errors on their own. In addition, errors are sometimes made by CRAs (or the companies they hire) in copying information from public records.