Page:United States Statutes at Large Volume 124.djvu/2033

 124 STAT. 2007 PUBLIC LAW 111–203—JULY 21, 2010 fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service, in light of the facts and circumstances. (b) MODEL DISCLOSURES.— (1) IN GENERAL.—Any final rule prescribed by the Bureau under this section requiring disclosures may include a model form that may be used at the option of the covered person for provision of the required disclosures. (2) FORMAT.—A model form issued pursuant to paragraph (1) shall contain a clear and conspicuous disclosure that, at a minimum— (A) uses plain language comprehensible to consumers; (B) contains a clear format and design, such as an easily readable type font; and (C) succinctly explains the information that must be communicated to the consumer. (3) CONSUMER TESTING.—Any model form issued pursuant to this subsection shall be validated through consumer testing. (c) BASIS FOR RULEMAKING.—In prescribing rules under this section, the Bureau shall consider available evidence about con- sumer awareness, understanding of, and responses to disclosures or communications about the risks, costs, and benefits of consumer financial products or services. (d) SAFE HARBOR.—Any covered person that uses a model form included with a rule issued under this section shall be deemed to be in compliance with the disclosure requirements of this section with respect to such model form. (e) TRIAL DISCLOSURE PROGRAMS.— (1) IN GENERAL.—The Bureau may permit a covered person to conduct a trial program that is limited in time and scope, subject to specified standards and procedures, for the purpose of providing trial disclosures to consumers that are designed to improve upon any model form issued pursuant to subsection (b)(1), or any other model form issued to implement an enumer- ated statute, as applicable. (2) SAFE HARBOR.—The standards and procedures issued by the Bureau shall be designed to encourage covered persons to conduct trial disclosure programs. For the purposes of admin- istering this subsection, the Bureau may establish a limited period during which a covered person conducting a trial disclo- sure program shall be deemed to be in compliance with, or may be exempted from, a requirement of a rule or an enumer- ated consumer law. (3) PUBLIC DISCLOSURE.—The rules of the Bureau shall provide for public disclosure of trial disclosure programs, which public disclosure may be limited, to the extent necessary to encourage covered persons to conduct effective trials. (f) COMBINED MORTGAGE LOAN DISCLOSURE.—Not later than 1 year after the designated transfer date, the Bureau shall propose for public comment rules and model disclosures that combine the disclosures required under the Truth in Lending Act and sections 4 and 5 of the Real Estate Settlement Procedures Act of 1974, into a single, integrated disclosure for mortgage loan transactions covered by those laws, unless the Bureau determines that any proposal issued by the Board of Governors and the Secretary of Housing and Urban Development carries out the same purpose. Deadline. Public comment.