Title 15 — Commerce and TradeRelease 119-73
§1604 Disclosure guidelines
Title 15 › Chapter CHAPTER 41— - CONSUMER CREDIT PROTECTION › Subchapter SUBCHAPTER I— - CONSUMER CREDIT COST DISCLOSURE › Part Part A— - General Provisions › § 1604
Summary
The Bureau must make rules to carry out these disclosure laws. It can add requirements, classes, or exceptions it thinks are needed to make the rules work, prevent people from avoiding them, or help people follow them. The Bureau must publish one clear, combined mortgage disclosure form that brings together the disclosure rules of this law and the Real Estate Settlement Procedures Act. The form should use plain language and be easy to read. Lenders do not have to use the Bureau’s model form, but if they use a Bureau model form (or use it and only remove information that is not required or rearrange the layout without changing the meaning), they will be treated as following the law. Model forms are made after public notice and a chance to comment. New or changed disclosure rules take effect on the October 1 that comes at least six months after the rule is issued, though the Bureau can lengthen or shorten this time in special cases. Lenders may follow new rules earlier if they choose. For certain charitable 0% mortgage loans, the HUD–1 and GFE forms plus a disclosure like Loan Model Form H–2 count as an appropriate model. The Bureau may exempt whole classes of transactions (except certain mortgages) if the rules do not give consumers a real benefit. When deciding exemptions, the Bureau must explain its reasons and consider things like loan size, how the rules affect costs and complexity, the borrower’s situation and sophistication, whether the loan is secured by the borrower’s main home, and whether consumer protection would be harmed. The Bureau can also exempt transactions with consumers who have more than $200,000 in annual earned income or more than $1,000,000 in net assets if the consumer signs a handwritten, dated waiver; those dollar tests can be adjusted for inflation. Courts must give deference to the Bureau’s interpretation of these rules as if it were the only agency, except for two specific sections. The Board retains rulemaking authority over persons described in other law.
Full Legal Text
Title 15, §1604
Commerce and Trade — Source: USLM XML via OLRC
(a)The Bureau shall prescribe regulations to carry out the purposes of this subchapter. Except with respect to the provisions of section 1639 of this title that apply to a mortgage referred to in section 1602(aa) 11 See References in Text note below. of this title, such regulations may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions, as in the judgment of the Bureau are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.
(b)The Bureau shall publish a single, integrated disclosure for mortgage loan transactions (including real estate settlement cost statements) which includes the disclosure requirements of this subchapter in conjunction with the disclosure requirements of the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.] that, taken together, may apply to a transaction that is subject to both or either provisions of law. The purpose of such model disclosure shall be to facilitate compliance with the disclosure requirements of this subchapter and the Real Estate Settlement Procedures Act of 1974, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. In devising such forms, the Bureau shall consider the use by creditors or lessors of data processing or similar automated equipment. Nothing in this subchapter may be construed to require a creditor or lessor to use any such model form or clause prescribed by the Bureau under this section. A creditor or lessor shall be deemed to be in compliance with the disclosure provisions of this subchapter with respect to other than numerical disclosures if the creditor or lessor (1) uses any appropriate model form or clause as published by the Bureau, or (2) uses any such model form or clause and changes it by (A) deleting any information which is not required by this subchapter, or (B) rearranging the format, if in making such deletion or rearranging the format, the creditor or lessor does not affect the substance, clarity, or meaningful sequence of the disclosure.
(c)Model disclosure forms and clauses shall be adopted by the Bureau after notice duly given in the Federal Register and an opportunity for public comment in accordance with section 553 of title 5.
(d)Any regulation of the Bureau, or any amendment or interpretation thereof, requiring any disclosure which differs from the disclosures previously required by this part, part D, or part E or by any regulation of the Bureau promulgated thereunder shall have an effective date of that October 1 which follows by at least six months the date of promulgation, except that the Bureau may at its discretion take interim action by regulation, amendment, or interpretation to lengthen the period of time permitted for creditors or lessors to adjust their forms to accommodate new requirements or shorten the length of time for creditors or lessors to make such adjustments when it makes a specific finding that such action is necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices. Notwithstanding the previous sentence, any creditor or lessor may comply with any such newly promulgated disclosure requirements prior to the effective date of the requirements.
(e)With respect to a mortgage loan transaction involving a residential mortgage loan offered at 0 percent interest with only bonafide and reasonable fees and that is primarily for charitable purposes by an organization described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title, forms HUD–1 and GFE (as defined under section 1024.2(b) of title 12, Code of Federal Regulations) together with a disclosure substantially in the form of the Loan Model Form H–2 (as depicted in Appendix H to part 1026 of title 12, Code of Federal Regulations) shall, collectively, be an appropriate model form for purposes of subsection (b) of this section.
(f)(1)The Bureau may exempt, by regulation, from all or part of this subchapter all or any class of transactions, other than transactions involving any mortgage described in section 1602(aa) 1 of this title, for which, in the determination of the Bureau, coverage under all or part of this subchapter does not provide a meaningful benefit to consumers in the form of useful information or protection.
(2)In determining which classes of transactions to exempt in whole or in part under paragraph (1), the Bureau shall consider the following factors and publish its rationale at the time a proposed exemption is published for comment:
(A)The amount of the loan and whether the disclosures, right of rescission, and other provisions provide a benefit to the consumers who are parties to such transactions, as determined by the Bureau.
(B)The extent to which the requirements of this subchapter complicate, hinder, or make more expensive the credit process for the class of transactions.
(C)The status of the borrower, including—
(i)any related financial arrangements of the borrower, as determined by the Bureau;
(ii)the financial sophistication of the borrower relative to the type of transaction; and
(iii)the importance to the borrower of the credit, related supporting property, and coverage under this subchapter, as determined by the Bureau;
(D)whether the loan is secured by the principal residence of the consumer; and
(E)whether the goal of consumer protection would be undermined by such an exemption.
(g)(1)The Bureau, by regulation, may exempt from the requirements of this subchapter certain credit transactions if—
(A)the transaction involves a consumer—
(i)with an annual earned income of more than $200,000; or
(ii)having net assets in excess of $1,000,000 at the time of the transaction; and
(B)a waiver that is handwritten, signed, and dated by the consumer is first obtained from the consumer.
(2)The Bureau, at its discretion, may adjust the annual earned income and net asset requirements of paragraph (1) for inflation.
(h)Notwithstanding any power granted to any Federal agency under this subchapter, the deference that a court affords to the Bureau with respect to a determination made by the Bureau relating to the meaning or interpretation of any provision of this subchapter, other than section 1639e or 1639h of this title, shall be applied as if the Bureau were the only agency authorized to apply, enforce, interpret, or administer the provisions of this subchapter.
(i)Notwithstanding subsection (a), the Board shall have authority to prescribe rules under this subchapter with respect to a person described in section 5519(a) of title 12. Regulations prescribed under this subsection may contain such classifications, differentiations, or other provisions, as in the judgment of the Board are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 1602(aa) of this title, referred to in subsecs. (a) and (f)(1), was redesignated section 1602(bb) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107. The Real Estate Settlement Procedures Act of 1974, referred to in subsec. (b), is Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§ 2601 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see
Short Title
note set out under section 2601 of Title 12 and Tables.
Amendments
2021—Subsec. (e). Pub. L. 116–342 added subsec. (e). 2010—Subsec. (a). Pub. L. 111–203, § 1100A(2), (4), substituted “Bureau” for “Board” in two places, substituted “Except with respect to the provisions of section 1639 of this title that apply to a mortgage referred to in section 1602(aa) of this title, such
Regulations
may contain such additional requirements,”for “Except in the case of a mortgage referred to in section 1602(aa) of this title, these
Regulations
may contain such”, and inserted “all or” after “exceptions for”. Subsec. (b). Pub. L. 111–203, § 1100A(2), (5), substituted “Bureau” for “Board” wherever appearing in last three sentences and substituted first two sentences for former first sentence which read as follows: “The Board shall publish model disclosure forms and clauses for common transactions to facilitate compliance with the disclosure requirements of this subchapter and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures.” Subsecs. (c), (d). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board” wherever appearing. Subsec. (f). Pub. L. 111–203, § 1100A(2), (6), substituted “Bureau” for “Board” wherever appearing and inserted “all or” after “from all or part of this subchapter” in par. (1). Subsec. (g). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board” in pars. (1) and (2). Subsec. (h). Pub. L. 111–203, § 1472(c), which directed addition of subsec. (h) at end of section, was executed by adding subsec. (h) before subsec. (i), to reflect the probable intent of Congress and prior amendment by Pub. L. 111–203, § 1100A(7). See below. Subsec. (i). Pub. L. 111–203, § 1100A(7), added subsec. (i). 1996—Subsec. (f). Pub. L. 104–208, § 2102(b), added subsec. (f). Subsec. (g). Pub. L. 104–208, § 2104, added subsec. (g). 1994—Subsec. (a). Pub. L. 103–325 substituted “Except in the case of a mortgage referred to in section 1602(aa) of this title, these” for “These” in second sentence. 1980—Pub. L. 96–221 designated existing provisions as subsec. (a) and added subsecs. (b) to (d).
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 AmendmentAmendment by section 1100A(2), (4)–(7) of 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. Amendment by section 1472(c) of Pub. L. 111–203 effective on the date on which final
Regulations
implementing that amendment take effect, or on the date that is 18 months after the designated transfer date if such
Regulations
have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of this title.
Effective Date
of 1980 AmendmentAmendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all
Regulations
, forms, and clauses required to be prescribed to be promulgated at least one year prior to such
Effective Date
, and allowing any creditor to comply with any
Amendments
, in accordance with the
Regulations
, forms, and clauses prescribed by the Board prior to such
Effective Date
, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.
Reference
Citations & Metadata
Citation
15 U.S.C. § 1604
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73