US Code

Public Law 119-73 (01/23/2026)

12 U.S.C. § 2604

Home buying information booklets

(a)

Preparation and distribution

section 1701x(e) of this titleThe Director of the Bureau of Consumer Financial Protection (hereafter in this section referred to as the “Director”) shall prepare, at least once every 5 years, a booklet to help consumers applying for federally related mortgage loans to understand the nature and costs of real estate settlement services. The Director shall prepare the booklet in various languages and cultural styles, as the Director determines to be appropriate, so that the booklet is understandable and accessible to homebuyers of different ethnic and cultural backgrounds. The Director shall distribute such booklets to all lenders that make federally related mortgage loans. The Director shall also distribute to such lenders lists, organized by location, of homeownership counselors certified under for use in complying with the requirement under subsection (c) of this section.

(b)

Contents

Each booklet shall be in such form and detail as the Director shall prescribe and, in addition to such other information as the Director may provide, shall include in plain and understandable language the following information:
(1)
A description and explanation of the nature and purpose of the costs incident to a real estate settlement or a federally related mortgage loan. The description and explanation shall provide general information about the mortgage process as well as specific information concerning, at a minimum—
(A)
balloon payments;
(B)
prepayment penalties;
(C)
the advantages of prepayment; and
(D)
the trade-off between closing costs and the interest rate over the life of the loan.
(2)
section 2603 of this title An explanation and sample of the uniform settlement statement required by .
(3)
A list and explanation of lending practices, including those prohibited by the Truth in Lending Act or other applicable Federal law, and of other unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement.
(4)
A list and explanation of questions a consumer obtaining a federally related mortgage loan should ask regarding the loan, including whether the consumer will have the ability to repay the loan, whether the consumer sufficiently shopped for the loan, whether the loan terms include prepayment penalties or balloon payments, and whether the loan will benefit the borrower.
(5)
15 U.S.C. 1635 An explanation of the right of rescission as to certain transactions provided by sections 125 and 129 of the Truth in Lending Act [, 1639].
(6)
A brief explanation of the nature of a variable rate mortgage and a reference to the booklet entitled “Consumer Handbook on Adjustable Rate Mortgages”, published by the Director, or to any suitable substitute of such booklet that the Director may subsequently adopt pursuant to such section.
(7)
15 U.S.C. 1637a A brief explanation of the nature of a home equity line of credit and a reference to the pamphlet required to be provided under section 127A of the Truth in Lending Act [].
(8)
section 1701x(a)(4) of this title Information about homeownership counseling services made available pursuant to , a recommendation that the consumer use such services, and notification that a list of certified providers of homeownership counseling in the area, and their contact information, is available.
(9)
section 2609 of this title An explanation of the nature and purpose of escrow accounts when used in connection with loans secured by residential real estate and the requirements under regarding such accounts.
(10)
An explanation of the choices available to buyers of residential real estate in selecting persons to provide necessary services incidental to a real estate settlement.
(11)
An explanation of a consumer’s responsibilities, liabilities, and obligations in a mortgage transaction.
(12)
An explanation of the nature and purpose of real estate appraisals, including the difference between an appraisal and a home inspection.
(13)
Notice that the Office of Housing of the Department of Housing and Urban Development has made publicly available a brochure regarding loan fraud and a World Wide Web address and toll-free telephone number for obtaining the brochure.
(14)
An explanation of flood insurance and the availability of flood insurance under the National Flood Insurance Program or from a private insurance company, whether or not the real estate is located in an area having special flood hazards, and the following statement: “Although you may not be required to maintain flood insurance on all structures, you may still wish to do so, and your mortgage lender may still require you to do so to protect the collateral securing the mortgage. If you choose to not maintain flood insurance on a structure, and it floods, you are responsible for all flood losses relating to that structure.”.
The booklet prepared pursuant to this section shall take into consideration differences in real estate settlement procedures that may exist among the several States and territories of the United States and among separate political subdivisions within the same State and territory.
(c)

Estimate of charges

section 1701x(e) of this titleEach lender shall include with the booklet a good faith estimate of the amount or range of charges for specific settlement services the borrower is likely to incur in connection with the settlement as prescribed by the Bureau. Each lender shall also include with the booklet a reasonably complete or updated list of homeownership counselors who are certified pursuant to and located in the area of the lender.

(d)

Distribution by lenders to loan applicants at time of receipt or preparation of applications

Each lender referred to in subsection (a) shall provide the booklet described in such subsection to each person from whom it receives or for whom it prepares a written application to borrow money to finance the purchase of residential real estate. The lender shall provide the booklet in the version that is most appropriate for the person receiving it. Such booklet shall be provided by delivering it or placing it in the mail not later than 3 business days after the lender receives the application, but no booklet need be provided if the lender denies the application for credit before the end of the 3-day period.

(e)

Printing and distribution by lenders of booklets approved by Bureau

Booklets may be printed and distributed by lenders if their form and content are approved by the Bureau as meeting the requirements of subsection (b) of this section.

Pub. L. 93–533, § 588 Stat. 1725Pub. L. 94–205, § 489 Stat. 1158Pub. L. 102–550, title IX, § 951106 Stat. 3892Pub. L. 111–203, title X, § 1098(3)124 Stat. 2104Pub. L. 112–141, div. F, title II, § 100222126 Stat. 934Pub. L. 113–89, § 13(b)128 Stat. 1026(, , ; , , ; , , ; , title XIV, § 1450, , , 2174; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 93–533Pub. L. 93–533This chapter, referred to in subsec. (a), was in the original “this title” and was translated as reading “this Act”, meaning , which is classified principally to this chapter, to reflect the probable intent of Congress, because does not contain titles.

Pub. L. 90–32182 Stat. 146section 1601 of Title 15The Truth in Lending Act, referred to in subsec. (b)(3), is title I of , , , which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. Two sections 129 of the Act have been enacted and are classified to sections 1639 and 1639a of Title 15. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 113–892014—Subsec. (b)(14). inserted before period at end “, and the following statement: ‘Although you may not be required to maintain flood insurance on all structures, you may still wish to do so, and your mortgage lender may still require you to do so to protect the collateral securing the mortgage. If you choose to not maintain flood insurance on a structure, and it floods, you are responsible for all flood losses relating to that structure.’ ” and transferred par. (14) to appear after par. (13).

Pub. L. 112–1412012—Subsec. (b)(14). added par. (14) at end of subsec. (b).

Pub. L. 111–203, § 1450(1)2010—, substituted “Home buying” for “Special” in section catchline.

Pub. L. 111–203, § 1098(3)(A), substituted “Bureau” for “Secretary” wherever appearing.

Pub. L. 111–203, § 1450(2)Subsec. (a). , added subsec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: “The Bureau shall prepare and distribute booklets jointly addressing compliance with the requirements of the Truth in Lending Act and the provisions of this chapter, in order to help persons borrowing money to finance the purchase of residential real estate better to understand the nature and costs of real estate settlement services. The Bureau shall distribute such booklets to all lenders which make federally related mortgage loans.”

Pub. L. 111–203, § 1098(3)(B), substituted “The Bureau shall prepare and distribute booklets jointly addressing compliance with the requirements of the Truth in Lending Act and the provisions of this chapter, in order to help persons borrowing money to finance the purchase of residential real estate better to understand the nature and costs of real estate settlement services.” for “The Secretary shall prepare and distribute booklets to help persons borrowing money to finance the purchase of residential real estate better to understand the nature and costs of real estate settlement services.”

Pub. L. 111–203, § 1450(2)Subsec. (b). , added subsec. (b) and struck out former subsec. (b) which related to form and detail, cost elements, standard settlement form, escrow accounts, selection of persons for settlement services; and consideration of differences in settlement procedures.

Pub. L. 111–203, § 1450(3)section 1701x(e) of this titleSubsec. (c). , inserted at end “Each lender shall also include with the booklet a reasonably complete or updated list of homeownership counselors who are certified pursuant to and located in the area of the lender.”

Pub. L. 111–203, § 1450(4)Subsec. (d). , inserted “The lender shall provide the booklet in the version that is most appropriate for the person receiving it.” after the first sentence.

Pub. L. 102–5501992—Subsec. (d). substituted “Such booklet shall be provided by delivering it or placing it in the mail not later than 3 business days after the lender receives the application, but no booklet need be provided if the lender denies the application for credit before the end of the 3-day period.” for “Such booklet shall be provided at the time of receipt or preparation of such application.”

Pub. L. 94–2051976—Subsecs. (c) to (e). added subsec. (c), redesignated former subsec. (c) as (d), substituted “or for whom it prepares a written application” for “an application” and inserted “or preparation” after “receipt”, and redesignated former subsec. (d) as (e).

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

section 1098(3) of Pub. L. 111–203section 1100H of Pub. L. 111–203section 552a of Title 5Amendment by effective on the designated transfer date, see , set out as a note under , Government Organization and Employees.

section 1450 of Pub. L. 111–203section 1400(c) of Pub. L. 111–203section 1601 of Title 15Amendment by effective on the date on which final regulations implementing that amendment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see , set out as a note under , Commerce and Trade.

Effective Date of 1976 Amendment

Pub. L. 94–205Pub. L. 94–205section 12 of Pub. L. 94–205section 2602 of this titleAmendment by effective , with the Secretary authorized to suspend for up to 180 days from , any provision of this section as amended by , see , set out as a note under .

Effective Date

section 20 of Pub. L. 93–533section 2601 of this titleSection effective 180 days after , see , set out as a note under .