Page:United States Statutes at Large Volume 110 Part 4.djvu/563

 PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009 -400 "(b) INTERPRETATION. — In prescribing regulations under section 19(a), the Secretary shall ensure that, with respect to subsection (a) of this section, the exemption for credit transactions involving extensions of credit primarily for business, commercial, or agricultural purposes, as provided in section 7( 1) of the Real Estate Settlement Procedures Act of 1974 shall be the same as the exemption for such credit transactions under section 104(1) of the Truth in Lending Act.". (c) REDESIGNATION OF CONTROLLED BUSINESS ARRANGEMENTS AS AFFILIATED BUSINESS ARRANGEMENTS.— The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended— (1) in section 3(7), by striking "controlled business arrange- 12 USC 2602. ment" and inserting "affiliated business arrangement"; and (2) in subsections (c)(4) and (d)(6) of section 8, by striking 12 USC 2607. "controlled business arrangements" and inserting "affiliated business arrangements". (d) DISCLOSURES BY TELEPHONE OR ELECTRONIC MEDIA.— Section 8(c)(4) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2607(c)(4)(A)) is amended by striking subparagraph (A) and inserting the following "(A) a disclosure is made of the existence of such an arrangement to the person being referred and, in connection with such referral, such person is provided a written estimate of the charge or range of charges generally made by the provider to which the person is referred (i) in the case of a face-to-face referral or a referral made in writing or by electronic media, at or before the time of the referral (and compliance with this requirement in such case may be evidenced by a notation in a written, electronic, or similar system of records maintained in the regular course of business); (ii) in the case of a referral made by telephone, within 3 business days after the referral by telephone, (and in such case an abbreviated verbal disclosure of the existence of the arrangement and the fact that a written disclosure will be provided within 3 business days shall be made to the person being referred during the telephone referral); or (iii) in the case of a referral by a lender (including a referral by a lender to an affiliated lender), at the time the estimates required under section 5(c) are provided (notwithstanding clause (i) or (ii)); and any required written receipt of such disclosure (without regard to the manner of the disclosure under clause (i), (ii), or (iii)) may be obtained at the closing or settlement (except that a person making a face-to-face referral who provides the written disclosure at or before the time of the referral shall attempt to obtain any required written receipt of such disclosure at such time and if the person being referred chooses not to acknowledge the receipt of the disclosure at that time, that fact shall be noted in the written, electronic, or similar system of records maintained in the regular course of business by the person making the referral),". (e) LIMITATION ON CLAIMS ARISING FROM VIOLATIONS OF REQUIREMENTS FOR SERVICING MORTGAGES AND ADMINISTERING ESCROW ACCOUNTS.— Section 16 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2614) is amended— (1) by striking "section 8 or 9" and inserting "section 6, 8, or 9"; and (2) by striking "within one year" and inserting "within 3 years in the case of a violation of section 6 and 1 year in the case of a violation of section 8 or 9".

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