§ 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
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Stable record: federal_law:legal_authorities:uscode2024_d26c532133c0f8f1aca936d3 Source file: Laws/federal/codes/united-states-code-2024/title-12/section-2601-congressional-findings-and-purpose--46b9e92f28.md Pages: Not recorded – Not recorded Passage SHA-256: 100290ac8dcb3b243549631c576068eb845c8ebee5658a6129320cefec97c02b Retained source evidence SHA-256: 63c18a3c8325d5a7b0223497be41f6326a776527a1427e709999043d5aa4743c
Page 1442
TITLE 12—BANKS AND BANKING
§ 2601
shall be entitled to escheat or take custody of
the sum payable on such money order, trav-
eler’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.)
CHAPTER 27—REAL ESTATE SETTLEMENT
PROCEDURES
Sec.
2601.
Congressional findings and purpose.
2602.
Definitions.
2603.
Uniform settlement statement.
2604.
Home buying information booklets.
2605.
Servicing of mortgage loans and administra-
tion of escrow accounts.
2606.
Exempted transactions.
2607.
Prohibition against kickbacks and unearned
fees.
2608.
Title companies; liability of seller.
2609.
Limitation on requirement of advance depos-
its in escrow accounts.
2610.
Prohibition of fees for preparation of truth-
in-lending, uniform settlement, and escrow
account statements.
2611 to 2613. Repealed.
2614.
Jurisdiction of courts; limitations.
2615.
Contracts and liens; validity.
2616.
State laws unaffected; inconsistent Federal
and State provisions.
2617.
Authority of Bureau.
§ 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 complete classifica-
tion of this Act to the Code, see Short Title note below
and Tables.
Statutory Notes and Related Subsidiaries
CHANGE OF NAME
Reference to Administrator of Veterans’ Affairs
deemed to refer to Secretary of Veterans Affairs pursu-
ant to section 10 of Pub. L. 100–527, set out as a Depart-
ment of Veterans Affairs Act note under section 301 of
Title 38, Veterans’ Benefits.
EFFECTIVE DATE
Pub. L. 93–533, § 20, formerly § 19, Dec. 22, 1974, 88 Stat.
1731, renumbered § 20, 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 below], shall become effective one hundred and
eighty days after the date of the enactment of this Act
[Dec. 22, 1974].’’
SHORT TITLE OF 2021 AMENDMENT
Pub. L. 116–342, § 1, Jan. 13, 2021, 134 Stat. 5134, pro-
vided that: ‘‘This Act [amending section 2603 of this
title and section 1604 of Title 15, Commerce and Trade,
and enacting provisions set out as a note under section
2603 of this title] may be cited as the ‘Building Up Inde-
pendent Lives and Dreams Act’ or the ‘BUILD Act’.’’
SHORT TITLE OF 1976 AMENDMENT
Pub. L. 94–205, § 1, 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, en-
acting 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’.’’
SHORT TITLE
Pub. L. 93–533, § 1, Dec. 22, 1974, 88 Stat. 1724, provided
that: ‘‘This Act [enacting this chapter and sections
1730f and 1831b of this title and provisions set out as
notes under this section and section 1730f of this title]
may be cited as the ‘Real Estate Settlement Proce-
dures Act of 1974’.’’
SIMPLIFICATION
AND UNIFICATION
OF DISCLOSURES RE-
QUIRED
UNDER
RESPA AND
TILA FOR
MORTGAGE
TRANSACTIONS
Pub. L. 104–208, div. A, title II, § 2101, Sept. 30, 1996, 110
Stat. 3009–398, provided that:
‘‘(a) IN GENERAL.—With respect to credit transactions
which are subject to the Real Estate Settlement Proce-
dures Act of 1974 [12 U.S.C. 2601 et seq.] and the Truth
in Lending Act [15 U.S.C. 1601 et seq.], the Board of
Governors of the Federal Reserve System (hereafter in
this section referred to as the ‘Board’) and the Sec-
retary of Housing and Urban Development (hereafter in
this section referred to as the ‘Secretary’) shall take
such action as may be necessary before the end of the
6-month period beginning on the date of enactment of
this Act [Sept. 30, 1996]—
‘‘(1) to simplify and improve the disclosures appli-
cable to such transactions under such Acts, including
the timing of the disclosures; and
‘‘(2) to provide a single format for such disclosures
which will satisfy the requirements of each such Act
with respect to such transactions.
Page 1443
TITLE 12—BANKS AND BANKING
§ 2602
1 See References in Text note below.
‘‘(b) REGULATIONS.—To the extent that it is necessary
to prescribe any regulation in order to effect any
changes required to be made under subsection (a), the
proposed regulation shall be published in the Federal
Register before the end of the 6-month period referred
to in subsection (a).
‘‘(c) RECOMMENDATIONS
FOR
LEGISLATION.—If the
Board and the Secretary find that legislative action
may be necessary or appropriate in order to simplify
and unify the disclosure requirements under the Real
Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601
et seq.] and the Truth in Lending Act [15 U.S.C. 1601 et
seq.], the Board and the Secretary shall submit a report
containing recommendations to the Congress con-
cerning such action.’’
§ 2602. Definitions
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 or subordinate lien
on residential real property (including indi-
vidual units of condominiums and coopera-
tives) designed principally for the occupancy
of from one to four families, including any
such secured loan, the proceeds of which are
used to prepay or pay off an existing loan se-
cured by the same property; 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 Gov-
ernment, 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 de-
velopment program administered by the Sec-
retary or a housing or related program ad-
ministered by any other such officer or
agency; or
(iii) is intended to be sold by the origi-
nating lender to the Federal National Mort-
gage 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 Cor-
poration; or
(iv) is made in whole or in part by any
‘‘creditor’’, as defined in section 1602(f) 1 of
title 15, who makes or invests in residential
real estate loans aggregating more than
$1,000,000 per year, except that for the pur-
pose of this chapter, the term ‘‘creditor’’
does not include any agency or instrumen-
tality 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 examina-
tions, the provision of title certificates, title
insurance, services rendered by an attorney,
the preparation of documents, property sur-
veys, the rendering of credit reports or ap-
praisals, pest and fungus inspections, services
rendered by a real estate agent or broker, the
origination of a federally related mortgage
loan (including, but not limited to, the taking
of loan applications, loan processing, and the
underwriting and funding of loans), and the
handling of the processing, and closing or set-
tlement;
(4) the term ‘‘title company’’ means any in-
stitution which is qualified to issue title in-
surance, 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 Sec-
retary of Housing and Urban Development;
(7) the term ‘‘affiliated business arrange-
ment’’ 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 settle-
ment 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 di-
rectly or indirectly refers such business to
that provider or affirmatively influences the
selection of that provider;
(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 em-
ployer, officer, director, partner, franchisor, or
franchisee of such person; or (D) anyone who
has an agreement, arrangement, or under-
standing, with such person, the purpose or
substantial effect of which is to enable the
person in a position to refer settlement busi-
ness to benefit financially from the referrals
of such business; and
(9) the term ‘‘Bureau’’ means the Bureau of
Consumer Financial Protection.
(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 I [title IV, § 461(a)], Nov. 30, 1983,
97 Stat. 1230; Pub. L. 102–550, title IX, § 908(a),
(b), Oct. 28, 1992, 106 Stat. 3873, 3874; Pub. L.
104–208, div. A, title II, § 2103(c)(1), Sept. 30, 1996,
110 Stat. 3009–400; Pub. L. 111–203, title X,
§ 1098(1), July 21, 2010, 124 Stat. 2103.)
Editorial Notes
REFERENCES IN TEXT
Section 1602(f) of title 15, referred to in par. (1)(B)(iv),
was redesignated section 1602(g) of title 15 by Pub. L.
111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.
AMENDMENTS
2010—Par. (9). Pub. L. 111–203 added par. (9).
1996—Par. (7). Pub. L. 104–208 substituted ‘‘affiliated
business arrangement’’ for ‘‘controlled business ar-
rangement’’.
1992—Par. (1)(A). Pub. L. 102–550, § 908(b), inserted ‘‘or
subordinate’’ after ‘‘first’’ and ‘‘, including any such
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.
**(a) Informed use of credit** The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices.
**(b) Terms of personal property leases** The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 1601. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1601. Congressional findings and declaration of
purpose
(a) Informed use of credit
The Congress finds that economic stabiliza-
tion would be enhanced and the competition
among the various financial institutions and
other firms engaged in the extension of con-
sumer credit would be strengthened by the in-
formed use of credit. The informed use of credit
results from an awareness of the cost thereof by
consumers. It is the purpose of this subchapter
to assure a meaningful disclosure of credit
terms so that the consumer will be able to com-
pare more readily the various credit terms
available to him and avoid the uninformed use
of credit, and to protect the consumer against
inaccurate and unfair credit billing and credit
card practices.
(b) Terms of personal property leases
The Congress also finds that there has been a
recent trend toward leasing automobiles and
other durable goods for consumer use as an al-
ternative to installment credit sales and that
these leases have been offered without adequate
cost disclosures. It is the purpose of this sub-
chapter to assure a meaningful disclosure of the
terms of leases of personal property for per-
sonal, family, or household purposes so as to en-
able the lessee to compare more readily the var-
ious lease terms available to him, limit balloon
payments in consumer leasing, enable compari-
son of lease terms with credit terms where ap-
propriate, and to assure meaningful and accu-
rate disclosures of lease terms in advertise-
ments.
Page 1453
TITLE 15—COMMERCE AND TRADE
§ 1601
(Pub. L. 90–321, title I, § 102, May 29, 1968, 82 Stat.
146; Pub. L. 93–495, title III, § 302, Oct. 28, 1974, 88
Stat. 1511; Pub. L. 94–240, § 2, Mar. 23, 1976, 90
Stat. 257.)
Editorial Notes
AMENDMENTS
1976—Pub. L. 94–240 des
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 1601. This identifies an authority to review, not proof of applicability.