12 U.S.C. § 2603 : US Code - Section 2603: Uniform settlement statement

Search 12 U.S.C. § 2603 : US Code - Section 2603: Uniform settlement statement

(a) The Secretary, in consultation with the Administrator of
Veteran's Affairs, the Federal Deposit Insurance Corporation, and
the Director of the Office of Thrift Supervision, shall develop and
prescribe a standard form for the statement of settlement costs
which shall be used (with such variations as may be necessary to
reflect differences in legal and administrative requirements or
practices in different areas of the country) as the standard real
estate settlement form in all transactions in the United States
which involve federally related mortgage loans. Such form shall
conspicuously and clearly itemize all charges imposed upon the
borrower and all charges imposed upon the seller in connection with
the settlement and shall indicate whether any title insurance
premium included in such charges covers or insures the lender's
interest in the property, the borrower's interest, or both. The
Secretary may, by regulation, permit the deletion from the form
prescribed under this section of items which are not, under local
laws or customs, applicable in any locality, except that such
regulation shall require that the numerical code prescribed by the
Secretary be retained in forms to be used in all localities.
Nothing in this section may be construed to require that that part
of the standard form which relates to the borrower's transaction be
furnished to the seller, or to require that that part of the
standard form which relates to the seller be furnished to the
borrower.
(b) The form prescribed under this section shall be completed and
made available for inspection by the borrower at or before
settlement by the person conducting the settlement, except that (1)
the Secretary may exempt from the requirements of this section
settlements occurring in localities where the final settlement
statement is not customarily provided at or before the date of
settlement, or settlements where such requirements are impractical
and (2) the borrower may, in accordance with regulations of the
Secretary, waive his right to have the form made available at such
time. Upon the request of the borrower to inspect the form
prescribed under this section during the business day immediately
preceding the day of settlement, the person who will conduct the
settlement shall permit the borrower to inspect those items which
are known to such person during such preceding day.