Page:United States Statutes at Large Volume 124.djvu/2208

 124 STAT. 2182 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(A) Information concerning any applicable fees or costs associated with either the non-establishment of any such account at the time of the transaction, or any subsequent closure of any such account. ‘‘(B) A clear and prominent statement that the con- sumer is responsible for personally and directly paying the non-escrowed items, in addition to paying the mortgage loan payment, in the absence of any such account, and the fact that the costs for taxes, insurance, and related fees can be substantial. ‘‘(C) A clear explanation of the consequences of any failure to pay non-escrowed items, including the possible requirement for the forced placement of insurance by the creditor or servicer and the potentially higher cost (including any potential commission payments to the servicer) or reduced coverage for the consumer in the event of any such creditor-placed insurance. ‘‘(D) Such other information as the Board determines necessary for the protection of the consumer.’’. SEC. 1463. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 AMENDMENTS. (a) SERVICER PROHIBITIONS.—Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the following new subsections: ‘‘(k) SERVICER PROHIBITIONS.— ‘‘(1) IN GENERAL.—A servicer of a federally related mortgage shall not— ‘‘(A) obtain force-placed hazard insurance unless there is a reasonable basis to believe the borrower has failed to comply with the loan contract’s requirements to maintain property insurance; ‘‘(B) charge fees for responding to valid qualified writ- ten requests (as defined in regulations which the Bureau of Consumer Financial Protection shall prescribe) under this section; ‘‘(C) fail to take timely action to respond to a borrower’s requests to correct errors relating to allocation of payments, final balances for purposes of paying off the loan, or avoiding foreclosure, or other standard servicer’s duties; ‘‘(D) fail to respond within 10 business days to a request from a borrower to provide the identity, address, and other relevant contact information about the owner or assignee of the loan; or ‘‘(E) fail to comply with any other obligation found by the Bureau of Consumer Financial Protection, by regula- tion, to be appropriate to carry out the consumer protection purposes of this Act. ‘‘(2) FORCE-PLACED INSURANCE DEFINED.—For purposes of this subsection and subsections (l) and (m), the term ‘force- placed insurance’ means hazard insurance coverage obtained by a servicer of a federally related mortgage when the borrower has failed to maintain or renew hazard insurance on such property as required of the borrower under the terms of the mortgage. ‘‘(l) REQUIREMENTS FOR FORCE-PLACED INSURANCE.—A servicer of a federally related mortgage shall not be construed as having Deadline.