§ 2602. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2602]
TITLE 12--BANKS AND BANKING
CHAPTER 27--REAL ESTATE SETTLEMENT PROCEDURES
Sec. 2602. Definitions
For purposes of this chapter--
(1) the term ``federally related mortgage loan'' includes any
loan (other than temporary financing such as a construction loan)
which--
(A) is secured by a first or subordinate lien on residential
real property (including individual units of condominiums and
cooperatives) designed principally for the occupancy of from one
to four families, including any such secured loan, the proceeds
of which are used to prepay or pay off an existing loan secured
by the same property; and
(B)(i) is made in whole or in part by any lender the
deposits or accounts of which are insured by any agency of the
Federal Government, or is made in whole or in part by any lender
which is regulated by any agency of the Federal Government, or
(ii) is made in whole or in part, or insured, guaranteed,
supplemented, or assisted in any way, by the Secretary or any
other officer or agency of the Federal Government or under or in
connection with a housing or urban development program
administered by the Secretary or a housing or related program
administered by any other such officer or agency; or
(iii) is intended to be sold by the originating lender to
the Federal National Mortgage Association, the Government
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, or a financial institution from which it is to be
purchased by the Federal Home Loan Mortgage Corporation; or
(iv) is made in whole or in part by any ``creditor'', as
defined in section 1602(f) of title 15, who makes or invests in
residential real estate loans aggregating more than $1,000,000
per year, except that for the purpose of this chapter, the term
``creditor'' does not include any agency or instrumentality of
any State;
(2) the term ``thing of value'' includes any payment, advance,
funds, loan, service, or other consideration;
(3) the term ``Settlement services'' includes any service
provided in connection with a real estate settlement including, but
not limited to, the following: title searches, title examinations,
the provision of title certificates, title insurance, services
rendered by an attorney, the preparation of documents, property
surveys, the rendering of credit reports or appraisals, pest and
fungus inspections, services rendered by a real estate agent or
broker, the origination of a federally related mortgage loan
(including, but not limited to, the taking of loan applications,
loan processing, and the underwriting and funding of loans), and the
handling of the processing, and closing or settlement;
(4) the term ``title company'' means any institution which is
qualified to issue title insurance, directly or through its agents,
and also refers to any duly authorized agent of a title company;
(5) the term ``person'' includes individuals, corporations,
associations, partnerships, and trusts;
(6) the term ``Secretary'' means the Secretary of Housing and
Urban Development;
(7) the term ``affiliated business arrangement'' means an
arrangement in which (A) a person who is in a position to refer
business incident to or a part of a real estate settlement service
involving a federally related mortgage loan, or an associate of such
person, has either an affiliate relationship with or a direct or
beneficial ownership interest of more than 1 percent in a provider
of settlement services; and (B) either of such persons directly or
indirectly refers such business to that provider or affirmatively
influences the selection of that provider; and
(8) the term ``associate'' means one who has one or more of the
following relationships with a person in a position to refer
settlement business: (A) a spouse, parent, or child of such person;
(B) a corporation or business entity that controls, is controlled
by, or is under common control with such person; (C) an employer,
officer, director, partner, franchisor, or franchisee of such
person; or (D) anyone who has an agreement, arrangement, or
understanding, with such person, the purpose or substantial effect
of which is to enable the person in a position to refer settlement
business to benefit financially from the referrals of such business.
(Pub. L. 93-533, Sec. 3, Dec. 22, 1974, 88 Stat. 1724; Pub. L. 94-205,
Sec. 2, Jan. 2, 1976, 89 Stat. 1157; Pub. L. 98-181, title IV,
Sec. 461(a), Nov. 30, 1983, 97 Stat. 1230; Pub. L. 102-550, title IX,
Sec. 908(a), (b), Oct. 28, 1992, 106 Stat. 3873, 3874; Pub. L. 104-208,
div. A, title II, Sec. 2103(c)(1), Sept. 30, 1996, 110 Stat. 3009-400.)
Amendments
1996--Par. (7). Pub. L. 104-208 substituted ``affiliated business
arrangement'' for ``controlled business arrangement''.
1992--Par. (1)(A). Pub. L. 102-550, Sec. 908(b), inserted ``or
subordinate'' after ``first'' and ``, including any such secured loan,
the proceeds of which are used to prepay or pay off an existing loan
secured by the same property'' after ``families''.
Par. (3). Pub. L. 102-550, Sec. 908(a), inserted ``the origination
of a federally related mortgage loan (including, but not limited to, the
taking of loan applications, loan processing, and the underwriting and
funding of loans),'' after ``broker,''.
1983--Pars. (7), (8). Pub. L. 98-181 added pars. (7) and (8).
1976--Par. (1). Pub. L. 94-205, Sec. 2(1), inserted ``(other than
temporary financing such as a construction loan)'' in introductory text.
Par. (1)(A). Pub. L. 94-205, Sec. 2(2), inserted ``a first lien on''
after ``is secured by''.
Par. (1)(B)(iii). Pub. L. 94-205, Sec. 2(3)-(5), substituted ``is
intended to be sold by the originating lender to'' for ``is eligible for
purchase by'' and ``a'' and ``is to'' for ``from any'' and ``could'',
respectively, and struck out ``or'' after ``the Government National
Mortgage Association''.
Par. (1)(B)(iv). Pub. L. 94-205, Sec. 2(6), inserted ``, except that
for the purpose of this chapter, the term `creditor' does not include
any agency or instrumentality of any State'' after ``more than
$1,000,000 per year''.
Effective Date of 1992 Amendment
Section 908(d) of Pub. L. 102-550 provided that: ``This section
[amending this section and enacting provisions set out below] shall take
effect on the date of enactment of this Act [Oct. 28, 1992] and shall
not apply retroactively.''
Effective Date of 1983 Amendment
Section 461(f) of Pub. L. 98-181 provided that: ``The amendments
made by this section [amending this section and sections 2607, 2614, and
2617 of this title] shall become effective on January 1, 1984.''
Effective Date of 1976 Amendment
Section 12 of Pub. L. 94-205 provided that: ``The provisions of this
Act and the amendments made hereby [enacting section 2617 of this title,
amending this section, sections 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, and enacting and amending
provisions set out as notes under section 2601 of this title] shall
become effective upon enactment [Jan. 2, 1976]. The Secretary may
suspend for up to one hundred and eighty days from the date of enactment
of this Act [Jan. 2, 1976] any provision of section 4 and section 5 of
the Real Estate Settlement Procedures Act of 1974 [sections 2603 and
2604 of this title], as amended by this Act.''
Regulations
Section 908(c) of Pub. L. 102-550 provided that: ``The Secretary of
Housing and Urban Development shall issue regulations to implement the
amendments made by this section [amending this section] not later than
the expiration of the 180-day period beginning on the date of the
enactment of this Act [Oct. 28, 1992]. The regulations shall be issued
after notice and opportunity for public comment pursuant to the
provisions of section 553 of title 5, United States Code
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
section).''
Section Referred to in Other Sections
This section is referred to in title 15 section 6603.
