Page:United States Statutes at Large Volume 124.djvu/2206

 124 STAT. 2180 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(3) pursuant to the requirements for the escrowing of flood insurance payments for regulated lending institutions in section 102(d) of the Flood Disaster Protection Act of 1973. ‘‘(g) ADMINISTRATION OF MANDATORY ESCROW OR IMPOUND ACCOUNTS.— ‘‘(1) IN GENERAL.—Except as may otherwise be provided for in this title or in regulations prescribed by the Board, escrow or impound accounts established pursuant to subsection (b) shall be established in a federally insured depository institu- tion or credit union. ‘‘(2) ADMINISTRATION.—Except as provided in this section or regulations prescribed under this section, an escrow or impound account subject to this section shall be administered in accordance with— ‘‘(A) the Real Estate Settlement Procedures Act of 1974 and regulations prescribed under such Act; ‘‘(B) the Flood Disaster Protection Act of 1973 and regulations prescribed under such Act; and ‘‘(C) the law of the State, if applicable, where the real property securing the consumer credit transaction is located. ‘‘(3) APPLICABILITY OF PAYMENT OF INTEREST.—If prescribed by applicable State or Federal law, each creditor shall pay interest to the consumer on the amount held in any impound, trust, or escrow account that is subject to this section in the manner as prescribed by that applicable State or Federal law. ‘‘(4) PENALTY COORDINATION WITH RESPA.—Any action or omission on the part of any person which constitutes a violation of the Real Estate Settlement Procedures Act of 1974 or any regulation prescribed under such Act for which the person has paid any fine, civil money penalty, or other damages shall not give rise to any additional fine, civil money penalty, or other damages under this section, unless the action or omission also constitutes a direct violation of this section. ‘‘(h) DISCLOSURES RELATING TO MANDATORY ESCROW OR IMPOUND ACCOUNT.—In the case of any impound, trust, or escrow account that is required under subsection (b), the creditor shall disclose by written notice to the consumer at least 3 business days before the consummation of the consumer credit transaction giving rise to such account or in accordance with timeframes estab- lished in prescribed regulations the following information: ‘‘(1) The fact that an escrow or impound account will be established at consummation of the transaction. ‘‘(2) The amount required at closing to initially fund the escrow or impound account. ‘‘(3) The amount, in the initial year after the consummation of the transaction, of the estimated taxes and hazard insurance, including flood insurance, if applicable, and any other required periodic payments or premiums that reflects, as appropriate, either the taxable assessed value of the real property securing the transaction, including the value of any improvements on the property or to be constructed on the property (whether or not such construction will be financed from the proceeds of the transaction) or the replacement costs of the property. ‘‘(4) The estimated monthly amount payable to be escrowed for taxes, hazard insurance (including flood insurance, if Notice. Deadline. Regulations.