Page:United States Statutes at Large Volume 88 Part 2.djvu/410

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PUBLIC LAW 93-533-DFX. 22, 1974

[88 STAT.

(b) Each booklet shall be in such form and detail as the Secretary shall prescribe and, in addition to such other information as the Secretary may provide, shall include in clear and concise language— (1) a description and explanation of the nature and purpose of each cost incident to a real estate settlement; (2) an explanation and sample of the standard real estate settlement form developed and prescribed under section 4; (3) a description and explanation of the nature and purpose of escrow accounts when used in connection with loans secured by residential real estate; (4) an explanation of the choices available to buyers of residential real estate in selecting persons to provide necessary services incident to a real estate settlement; and (5) an explanation of the unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement. Such booklets shall take into consideration differences in real estate settlement procedures which may exist among the several States and territories of the United States and among separate political subdivisions within the same State and territory. (c) Each lender referred to in subsection (a) shall provide the booklet described in such subsection to each person from whom it receives an application to borrow money to finance the purchase of residential real estate. Such booklet shall be provided at the time of receipt of such application. (d) Booklets may be printed and distributed by lenders if their form and content are approved by the Secretary as meeting the requirements of subsection (b) of this section. ADVANCE DISCLOSURE OF SETTLEMENT COSTS 12 USC 2605.

Liability.

SEC. B. (a) Any lender agreeing to make a federally related mortgage loan shall provide or cause to be provided to the prospective borrower, to the prospective seller, and to any officer or agency of the Federal Government proposing to insure, guarantee, supplement, or assist such loan, at the time of the loan commitment, but in no case later than twelve calendar days prior to settlement, upon the standard real estate settlement form developed and prescribed under section 4, or upon a form developed and prescribed by the Secretary specifically for the purposes of this section, and in accordance with regulations prescribed by the Secretary, an itemized disclosure in writing of each charge arising in connection with such settlement. For the purposes of complying with this section, it shall be the duty of the lender agreeing to make the loan to obtain or cause to be obtained from persons who provide or will provide services in connection with such settlement the amount of each charge they intend to make. In the event the exact amount of any such charge is not available, a good faith estimate of such charge may be provided. ^^^ j£ g^j^y lender fails to provide a prospective borrower or seller with the disclosure as required by subsection (a), it shall be liable to such borrower or seller, as the casa may be, in an amount equal to— (1) the actual damages involved or $500, whichever is greater, and (2) in the case of any successful action to enforce the foregoing liability, the court costs of the action together with a reasonable attorney"s fee as determined by the court; except that" a lender may not be held liable for a violation in ary action brought under this subsection if it shows by a preponderance of the evidence that the violation was not intentional and resulted

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