(a) Provision of
list.
(1) Except
as otherwise provided in this section, not later than three business
days after a lender, mortgage broker, or dealer receives an application,
or information sufficient to complete an application, the lender must
provide the loan applicant with a clear and conspicuous written list
of homeownership counseling organizations that provide relevant counseling
services in the loan applicant’s location. The list of homeownership
counseling organizations distributed to each loan applicant under
this section shall be obtained no earlier than 30 days prior to the
time when the list is provided to the loan applicant from either:
(i) The Web site maintained
by the Bureau for lenders to use in complying with the requirements
of this section; or
(ii) Data
made available by the Bureau or HUD for lenders to use in complying
with the requirements of this section, provided that the data is used
in accordance with instructions provided with the data.
(2) The list of homeownership counseling
organizations provided under this section may be combined and provided
with other mortgage loan disclosures required pursuant to Regulation
Z, 12 CFR part 1026, or this part unless prohibited by Regulation
Z or this part.
(3) A mortgage broker
or dealer may provide the list of homeownership counseling organizations
required under this section to any loan applicant from whom it receives
or for whom it prepares an application. If the mortgage broker or
dealer has provided the required list of homeownership counseling
organizations, the lender is not required to provide an additional
list. The lender is responsible for ensuring that the list of homeownership
counseling organizations is provided to a loan applicant in accordance
with this section.
(4) If the lender,
mortgage broker, or dealer does not provide the list of homeownership
counseling organizations required under this section to the loan applicant
in person, the lender must mail or deliver the list to the loan applicant
by other means. The list may be provided in electronic form, subject
to compliance with the consumer consent and other applicable provisions
of the Electronic Signatures in Global and National Commerce Act (E-Sign
Act), 15 U.S.C. 7001 et seq.
(5) The lender is not required to provide the list of homeownership
counseling organizations required under this section if, before the
end of the three-business-day period provided in paragraph (a)(1)
of this section, the lender denies the application or the loan applicant
withdraws the application.
(6) If
a mortgage loan transaction involves more than one lender, only one
list of homeownership counseling organizations required under this
section shall be given to the loan applicant and the lenders shall
agree among themselves which lender will comply with the requirements
that this section imposes on any or all of them. If there is more
than one loan applicant, the required list of homeownership counseling
or- ganizations may be provided to any loan applicant with primary
liability on the mortgage loan obligation.
(b) Open-end lines of credit (home-equity plans)
under Regulation Z. For a federally related mortgage loan that
is a home-equity line of credit subject to Regulation Z, 12 CFR 1026.40,
a lender or mortgage broker that provides the loan applicant with
the list of homeownership organizations required under this section
may comply with the timing and delivery requirements set out in either
paragraph (a) of this section or 12 CFR 1026.40(b).
(c) Exemptions.
(1) Reverse mortgage
transactions. A lender is not required to provide an applicant
for a reverse mortgage transaction subject to 12 CFR 1026.33(a) the
list of homeownership counseling organizations required under this
section.
(2) Timeshare plans. A lender is not required to provide an applicant
for a mortgage loan secured by a timeshare, as described under 11
U.S.C. 101(53D), the list of homeownership counseling organizations
required under this section.
