§ 2601. — Congressional findings and purpose.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2601]
TITLE 12--BANKS AND BANKING
CHAPTER 27--REAL ESTATE SETTLEMENT PROCEDURES
Sec. 2601. Congressional findings and purpose
(a) The Congress finds that significant reforms in the real estate
settlement process are needed to insure that consumers throughout the
Nation are provided with greater and more timely information on the
nature and costs of the settlement process and are protected from
unnecessarily high settlement charges caused by certain abusive
practices that have developed in some areas of the country. The Congress
also finds that it has been over two years since the Secretary of
Housing and Urban Development and the Administrator of Veterans' Affairs
submitted their joint report to the Congress on ``Mortgage Settlement
Costs'' and that the time has come for the recommendations for Federal
legislative action made in that report to be implemented.
(b) It is the purpose of this chapter to effect certain changes in
the settlement process for residential real estate that will result--
(1) in more effective advance disclosure to home buyers and
sellers of settlement costs;
(2) in the elimination of kickbacks or referral fees that tend
to increase unnecessarily the costs of certain settlement services;
(3) in a reduction in the amounts home buyers are required to
place in escrow accounts established to insure the payment of real
estate taxes and insurance; and
(4) in significant reform and modernization of local
recordkeeping of land title information.
(Pub. L. 93-533, Sec. 2, Dec. 22, 1974, 88 Stat. 1724.)
References in Text
This chapter, referred to in subsec. (b), was in the original ``this
Act'', meaning Pub. L. 93-533, Dec. 22, 1974, 88 Stat. 1724, as amended,
known as the Real Estate Settlement Procedures Act of 1974, which is
classified principally to this chapter (Sec. 2601 et seq.). For complete
classification of this Act to the Code, see Short Title note below and
Tables.
Change of Name
Reference to Administrator of Veterans' Affairs deemed to refer to
Secretary of Veterans Affairs pursuant to section 10 of Pub. L. 100-527,
set out as a Department of Veterans Affairs Act note under section 301
of Title 38, Veterans' Benefits.
Effective Date
Section 20, formerly 19, of Pub. L. 93-533, as renumbered by Pub. L.
94-205, Sec. 10, Jan. 2, 1976, 89 Stat. 1159, provided that: ``The
provisions of this Act, and the amendments made thereby [see Short Title
note below], shall become effective one hundred and eighty days after
the date of the enactment of this Act [Dec. 22, 1974].''
Short Title of 1976 Amendment
Section 1 of Pub. L. 94-205, Jan. 2, 1976, 89 Stat. 1157, provided:
``That this Act [enacting section 2617 of this title, amending sections
2602, 2603, 2604, 2607, 2609 and 2616 of this title and section 1631 of
Title 15, Commerce and Trade, repealing sections 2605 and 2606 of this
title, enacting provisions set out as a note under section 2602 of this
title and amending provisions set out as a note under this section] may
be cited as the `Real Estate Settlement Procedures Act Amendments of
1975'.''
Short Title
Section 1 of Pub. L. 93-533 provided that: ``This Act [enacting this
chapter and sections 1730f and 1831b of this title and provisions set
out as notes under this section and section 1730f of this title] may be
cited as the `Real Estate Settlement Procedures Act of 1974'.''
Simplification and Unification of Disclosures Required Under RESPA and
TILA for Mortgage Transactions
Pub. L. 104-208, div. A, title II, Sec. 2101, Sept. 30, 1996, 110
Stat. 3009-398, provided that:
``(a) In General.--With respect to credit transactions which are
subject to the Real Estate Settlement Procedures Act of 1974 [12 U.S.C.
2601 et seq.] and the Truth in Lending Act [15 U.S.C. 1601 et seq.], the
Board of Governors of the Federal Reserve System (hereafter in this
section referred to as the `Board') and the Secretary of Housing and
Urban Development (hereafter in this section referred to as the
`Secretary') shall take such action as may be necessary before the end
of the 6-month period beginning on the date of enactment of this Act
[Sept. 30, 1996]--
``(1) to simplify and improve the disclosures applicable to such
transactions under such Acts, including the timing of the
disclosures; and
``(2) to provide a single format for such disclosures which will
satisfy the requirements of each such Act with respect to such
transactions.
``(b) Regulations.--To the extent that it is necessary to prescribe
any regulation in order to effect any changes required to be made under
subsection (a), the proposed regulation shall be published in the
Federal Register before the end of the 6-month period referred to in
subsection (a).
``(c) Recommendations for Legislation.--If the Board and the
Secretary find that legislative action may be necessary or appropriate
in order to simplify and unify the disclosure requirements under the
Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.]
and the Truth in Lending Act [15 U.S.C. 1601 et seq.], the Board and the
Secretary shall submit a report containing recommendations to the
Congress concerning such action.''
