In the case of any open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling, the creditor shall make the following disclosures in accordance with subsection (b):
Each annual percentage rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest.
In the case of a plan which provides for variable rates of interest on credit extended under the plan-
An itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs (including costs commonly described as "points"), and the time when such fees are payable.
An estimate, based on the creditor's experience with such plans and stated as a single amount or as a reasonable range, of the aggregate amount of additional fees that may be imposed by third parties (such as governmental authorities, appraisers, and attorneys) in connection with opening an account under the plan.
A statement that the consumer may ask the creditor for a good faith estimate by the creditor of the fees that may be imposed by third parties.
A statement that-
A clear and conspicuous statement-
A statement that-
A statement that the consumer should make or otherwise retain a copy of information disclosed under this subparagraph.
A statement that-
The repayment options under the plan, including-
An example, based on a $10,000 outstanding balance and the interest rate (other than a rate not based on the index under the plan) which is, or was recently, in effect under such plan, showing the minimum monthly or periodic payment, and the time it would take to repay the entire $10,000 if the consumer paid only the minimum periodic payments and obtained no additional extensions of credit.
If, under any repayment option of the plan, the payment of not more than the minimum periodic payments required under such option over the length of the repayment period-
as the case may be, a statement of such fact, including an explicit statement that at the end of such repayment period a balloon payment (as defined in section 1665b(f) of this title) would result which would be required to be paid in full at that time.
If applicable, a statement that-
Any limitation contained in the plan on the number of extensions of credit and the amount of credit which may be obtained during any month or other defined time period.
Any requirement which establishes a minimum amount for-
A statement that-
Any other term which the Bureau requires, in regulations, to be disclosed.
The disclosures required under subsection (a) with respect to any open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling and the pamphlet required under subsection (e) shall be provided to any consumer at the time the creditor distributes an application to establish an account under such plan to such consumer.
In the case of telephone applications, applications contained in magazines or other publications, or applications provided by a third party, the disclosures required under subsection (a) and the pamphlet required under subsection (e) shall be provided by the creditor before the end of the 3-day period beginning on the date the creditor receives a completed application from a consumer.
Except as provided in paragraph (1)(B), the disclosures required under subsection (a) shall be provided on or with any application to establish an account under an open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling.
The disclosures required under subsection (a) shall be conspicuously segregated from all other terms, data, or additional information provided in connection with the application, either by grouping the disclosures separately on the application form or by providing the disclosures on a separate form, in accordance with regulations of the Bureau.
The disclosures required by paragraphs (5), (6), and (7) of subsection (a) shall precede all of the other required disclosures.
Whether or not the disclosures required under subsection (a) are provided on the application form, the variable rate information described in subsection (a)(2) may be provided separately from the other information required to be disclosed.
In preparing the table required under subsection (a)(2)(G), the creditor shall consistently select one rate of interest for each year and the manner of selecting the rate from year to year shall be consistent with the plan.
In the case of an application to open an account under any open end consumer credit plan described in subsection (a) which is provided to a consumer by any person other than the creditor-
For purposes of this section and sections 1647 and 1665b of this title, the term "principal dwelling" includes any second or vacation home of the consumer.
In addition to the disclosures required under subsection (a) with respect to an application to open an account under any open end consumer credit plan described in such subsection, the creditor or other person providing such disclosures to the consumer shall provide-
1So in original. Probably should be followed by "Loan".
15 U.S.C. § 1637a
EDITORIAL NOTES
REFERENCES IN TEXTSection 4 of the Home Equity Loan Consumer Protection Act of 1988, referred to in subsec. (e)(1), is section 4 of Pub. L. 100-709 which is set out as a note below.
AMENDMENTS2010-Subsecs. (a)(14), (b)(2)(B), (e). Pub. L. 111-203 substituted "Bureau" for "Board" wherever appearing. 2005-Subsec. (a)(13). Pub. L. 109-8 substituted "tax deductibility" for "consultation of tax advisor" in heading, designated existing provisions as introductory provisions and subpar. (A), inserted dash, substituted ";and" for period at end of subpar. (A), and added subpar. (B).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111-203 effective on the designated transfer date, see section 1100H of Pub. L. 111-203 set out as a note under section 552a of Title 5, Government Organization and Employees.
EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109-8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109-8 set out as a note under section 101 of Title 11.
EFFECTIVE DATEFor effective date of section, see Regulations; Effective Date note below.
REGULATIONS Pub. L. 109-8, title XIII, §1302(c), Apr. 20, 2005, 119 Stat. 209, provided that: "(1) IN GENERAL.-The Board [of Governors of the Federal Reserve System] shall promulgate regulations implementing the amendments made by this section [amending this section and sections 1638, 1664, and 1665b of this title]."(2) EFFECTIVE DATE.-Regulations issued under paragraph (1) shall not take effect until the later of- "(A) 12 months after the date of enactment of this Act [Apr. 20, 2005]; or "(B) 12 months after the date of publication of such final regulations by the Board."
REGULATIONS; EFFECTIVE DATE Pub. L. 100-709, §7, Nov. 23, 1988, 102 Stat. 4734, provided that: "(a) REGULATIONS.-Before the end of the 60-day period beginning on the date of the enactment of this Act [Nov. 23, 1988], the Board of Governors of the Federal Reserve System shall prescribe such regulations as may be necessary to carry out the proposes [sic] of the amendments made by this Act [enacting this section and sections 1647 and 1665b of this title, amending sections 1632 and 1637 of this title, and enacting provisions set out as notes under this section and section 1601 of this title]."(b) EFFECTIVE DATE.-The amendments made by this Act, and the regulations prescribed pursuant to subsection (a) with respect to such amendments, shall apply to- "(1) any agreement to open an account under an open end consumer credit plan under which extensions of credit are secured by a consumer's principal dwelling which is entered into after the end of the 5-month period beginning on the date on which the regulations prescribed under subsection (a) become final; and"(2) any application to open such an account which is distributed by, or received by a creditor, after the end of such 5-month period."(c) VOLUNTARY COMPLIANCE.-Notwithstanding subsection (b), any creditor may comply with the amendments made by this Act, in accordance with the regulations prescribed by the Board, before the effective date established under such subsection."
CONSUMER EDUCATIONPub. L. 100-709, §4, Nov. 23, 1988, 102 Stat. 4733, provided that: "The Board of Governors of the Federal Reserve System shall develop and prepare a pamphlet for distribution to consumers which contains-"(1) a general description of open end consumer credit plans secured by the consumer's principal dwelling and the terms and conditions under which such loans are generally extended; and"(2) a discussion of the potential advantages and disadvantages of such plans, including how to compare among home equity plans and between home equity and closed end credit plans."