**(a) Promulgation, contents, etc., of regulations** The Bureau shall prescribe regulations to carry out the purposes of this subchapter. Except with respect to the provisions of [section 1639 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639&num=0&edition=prelim) that apply to a mortgage referred to in section 1602(aa) 11 See References in Text note below. of this title, such regulations may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions, as in the judgment of the Bureau are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.
**(b) Model disclosure forms and clauses; publication, criteria, compliance, etc.** The Bureau shall publish a single, integrated disclosure for mortgage loan transactions (including real estate settlement cost statements) which includes the disclosure requirements of this subchapter in conjunction with the disclosure requirements of the Real Estate Settlement Procedures Act of 1974 [[12 U.S.C. 2601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2601&num=0&edition=prelim) et seq.] that, taken together, may apply to a transaction that is subject to both or either provisions of law. The purpose of such model disclosure shall be to facilitate compliance with the disclosure requirements of this subchapter and the Real Estate Settlement Procedures Act of 1974, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. In devising such forms,
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Stable record: federal_law:legal_authorities:record_usc_44a6456a0563760fa6872766 Source file: Laws/federal/codes/united-states-code/title-15/section-1604-disclosure-guidelines--0c2c46f133.md Pages: Not recorded – Not recorded Passage SHA-256: df2e623f8336db3aba0ecfe29547ff481103631915ac8a4b3ca67159937290c5 Retained source evidence SHA-256: 9fd0de6e0aa8bc5dd09d8db9de6eccd12fe98a80096fb97d4e37df8299f779ee
Source location: Title 15, Chapter 41, § 1604; chapter-041-consumer-credit-protection.md
Stored source content
**(a) Promulgation, contents, etc., of regulations** The Bureau shall prescribe regulations to carry out the purposes of this subchapter. Except with respect to the provisions of [section 1639 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639&num=0&edition=prelim) that apply to a mortgage referred to in section 1602(aa) 11 See References in Text note below. of this title, such regulations may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions, as in the judgment of the Bureau are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.
**(b) Model disclosure forms and clauses; publication, criteria, compliance, etc.** The Bureau shall publish a single, integrated disclosure for mortgage loan transactions (including real estate settlement cost statements) which includes the disclosure requirements of this subchapter in conjunction with the disclosure requirements of the Real Estate Settlement Procedures Act of 1974 [[12 U.S.C. 2601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2601&num=0&edition=prelim) et seq.] that, taken together, may apply to a transaction that is subject to both or either provisions of law. The purpose of such model disclosure shall be to facilitate compliance with the disclosure requirements of this subchapter and the Real Estate Settlement Procedures Act of 1974, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. In devising such forms, the Bureau shall consider the use by creditors or lessors of data processing or similar automated equipment. Nothing in this subchapter may be construed to require a creditor or lessor to use any such model form or clause prescribed by the Bureau under this section. A creditor or lessor shall be deemed to be in compliance with the disclosure provisions of this subchapter with respect to other than numerical disclosures if the creditor or lessor (1) uses any appropriate model form or clause as published by the Bureau, or (2) uses any such model form or clause and changes it by (A) deleting any information which is not required by this subchapter, or (B) rearranging the format, if in making such deletion or rearranging the format, the creditor or lessor does not affect the substance, clarity, or meaningful sequence of the disclosure.
**(c) Procedures applicable for adoption of model forms and clauses** Model disclosure forms and clauses shall be adopted by the Bureau after notice duly given in the Federal Register and an opportunity for public comment in accordance with [section 553 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section553&num=0&edition=prelim).
**(d) Effective dates of regulations containing new disclosure requirements** Any regulation of the Bureau, or any amendment or interpretation thereof, requiring any disclosure which differs from the disclosures previously required by this part, part D, or part E or by any regulation of the Bureau promulgated thereunder shall have an effective date of that October 1 which follows by at least six months the date of promulgation, except that the Bureau may at its discretion take interim action by regulation, amendment, or interpretation to lengthen the period of time permitted for creditors or lessors to adjust their forms to accommodate new requirements or shorten the length of time for creditors or lessors to make such adjustments when it makes a specific finding that such action is necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices. Notwithstanding the previous sentence, any creditor or lessor may comply with any such newly promulgated disclosure requirements prior to the effective date of the requirements.
**(e) Disclosure for charitable mortgage loan transactions** With respect to a mortgage loan transaction involving a residential mortgage loan offered at 0 percent interest with only bonafide and reasonable fees and that is primarily for charitable purposes by an organization described in [section 501(c)(3) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501/c/3&num=0&edition=prelim) and exempt from taxation under section 501(a) of such title, forms HUD–1 and GFE (as defined under section 1024.2(b) of title 12, Code of Federal Regulations) together with a disclosure substantially in the form of the Loan Model Form H–2 (as depicted in Appendix H to part 1026 of title 12, Code of Federal Regulations) shall, collectively, be an appropriate model form for purposes of subsection (b) of this section.
**(f) Exemption authority**
(1) **In general** — The Bureau may exempt, by regulation, from all or part of this subchapter all or any class of transactions, other than transactions involving any mortgage described in section 1602(aa) 1 of this title, for which, in the determination of the Bureau, coverage under all or part of this subchapter does not provide a meaningful benefit to consumers in the form of useful information or protection.
(2) **Factors for consideration** — In determining which classes of transactions to exempt in whole or in part under paragraph (1), the Bureau shall consider the following factors and publish its rationale at the time a proposed exemption is published for comment:
(A) The amount of the loan and whether the disclosures, right of rescission, and other provisions provide a benefit to the consumers who are parties to such transactions, as determined by the Bureau.
(B) The extent to which the requirements of this subchapter complicate, hinder, or make more expensive the credit process for the class of transactions.
(C) The status of the borrower, including—
(i) any related financial arrangements of the borrower, as determined by the Bureau;
(ii) the financial sophistication of the borrower relative to the type of transaction; and
(iii) the importance to the borrower of the credit, related supporting property, and coverage under this subchapter, as determined by the Bureau;
(D) whether the loan is secured by the principal residence of the consumer; and
(E) whether the goal of consumer protection would be undermined by such an exemption.
**(g) Waiver for certain borrowers**
(1) **In general** — The Bureau, by regulation, may exempt from the requirements of this subchapter certain credit transactions if—
(A) the transaction involves a consumer—
(i) with an annual earned income of more than $200,000; or
(ii) having net assets in excess of $1,000,000 at the time of the transaction; and
(B) a waiver that is handwritten, signed, and dated by the consumer is first obtained from the consumer.
(2) **Adjustments by the Bureau** — The Bureau, at its discretion, may adjust the annual earned income and net asset requirements of paragraph (1) for inflation.
**(h) Deference** Notwithstanding any power granted to any Federal agency under this subchapter, the deference that a court affords to the Bureau with respect to a determination made by the Bureau relating to the meaning or interpretation of any provision of this subchapter, other than section 1639e or 1639h of this title, shall be applied as if the Bureau were the only agency authorized to apply, enforce, interpret, or administer the provisions of this subchapter.
**(i) Authority of the Board to prescribe rules** Notwithstanding subsection (a), the Board shall have authority to prescribe rules under this subchapter with respect to a person described in [section 5519(a) of title 12](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5519/a&num=0&edition=prelim). Regulations prescribed under this subsection may contain such classifications, differentiations, or other provisions, as in the judgment of the Board are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(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.
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 2601. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2601. Congressional findings and purpose
(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 infor-
mation on the nature and costs of the settle-
ment process and are protected from unneces-
sarily 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 Sec-
retary of Housing and Urban Development and
the Administrator of Veterans’ Affairs sub-
mitted 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 im-
plemented.
(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 refer-
ral fees that tend to increase unnecessarily
the costs of certain settlement services;
(3) in a reduction in the amounts home buy-
ers are required to place in escrow accounts
established to insure the payment of real es-
tate taxes and insurance; and
(4) in significant reform and modernization
of local recordkeeping of land title informa-
tion.
(Pub. L. 93–533, § 2, Dec. 22, 1974, 88 Stat. 1724.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (b), was in the
original ‘‘this Act’’, meaning Pub. L. 93–533, Dec. 22,
1974, 88 Stat. 1724, known as the Real Estate Settlement
Procedures Act of 1974, which is classified principally
to this chapter (§ 2601 et seq.). For com
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 2601. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1604. Disclosure guidelines
(a) Promulgation, contents, etc., of regulations
The Bureau shall prescribe regulations to
carry out the purposes of this subchapter. Ex-
cept with respect to the provisions of section
1639 of this title that apply to a mortgage re-
ferred to in section 1602(aa) 1 of this title, such
regulations may contain such additional re-
quirements, classifications, differentiations, or
other provisions, and may provide for such ad-
justments and exceptions for all or any class of
transactions, as in the judgment of the Bureau
are necessary or proper to effectuate the pur-
poses of this subchapter, to prevent circumven-
tion or evasion thereof, or to facilitate compli-
ance therewith.
(b) Model disclosure forms and clauses; publica-
tion, criteria, compliance, etc.
The Bureau shall publish a single, integrated
disclosure for mortgage loan transactions (in-
cluding real estate settlement cost statements)
which includes the disclosure requirements of
this subchapter in conjunction with the disclo-
sure requirements of the Real Estate Settlement
Procedures Act of 1974 [12 U.S.C. 2601 et seq.]
that, taken together, may apply to a trans-
action that is subject to both or either provi-
sions of law. The purpose of such model disclo-
sure shall be to facilitate compliance with the
disclosure requirements of this subchapter and
the Real Estate Settlement Procedures Act of
1974, and to aid the borrower or lessee in under-
standing the transaction by utilizing readily un-
derstandable language to simplify the technical
nature of the disclosures. In devising such
forms, the Bureau shall consider the use by
creditors or lessors of data processing or similar
automated equipment. Nothing in this sub-
chapter may be construed to require a cred