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Title 12, Banks and BankingRelease 119-110

§2617 Authority of Bureau

Title 12 › CHAPTER 27 — REAL ESTATE SETTLEMENT PROCEDURES › § 2617

Last updated Sep 23, 2026|Official source

Summary

The Bureau can make rules, explain how those rules work, and give reasonable exceptions for groups of transactions it covers. If someone acts or fails to act in good faith while following a Bureau or Attorney General rule or interpretation, they are not liable under this chapter or state laws even if that rule is later changed or ruled invalid. The Secretary can investigate matters needed to enforce these rules, hold hearings, take oaths, and use subpoenas to get witnesses and documents. A federal district court in the area can order people to obey those subpoenas and punish disobedience as contempt. The change to part 3500 of title 24 published June 7, 1996 — which removes the employer‑to‑employee referral exemption at 3500.14(g)(1)(vii) and replaces it with narrower exemptions in new clauses (vii), (viii), and (ix) — cannot take effect before July 31, 1997. The rule in effect on May 1, 1996 stays in force until the amendment takes effect. The Secretary must announce the effective date 90 to 180 days before it starts.

Full Legal Text

Title 12, §2617

Banks and Banking, Source: USLM XML via OLRC

(a)Issuance of regulations; exemptions
The Bureau is authorized to prescribe such rules and regulations, to make such interpretations, and to grant such reasonable exemptions for classes of transactions, as may be necessary to achieve the purposes of this chapter.
(b)Liability for acts done in good faith in conformity with rule, regulation, or interpretation
No provision of this chapter or the laws of any State imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or interpretation thereof by the Bureau or the Attorney General, notwithstanding that after such act or omission has occurred, such rule, regulation, or interpretation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(c)Investigations; hearings; failure to obey order; contempt
(1)The Secretary may investigate any facts, conditions, practices, or matters that may be deemed necessary or proper to aid in the enforcement of the provisions of this chapter, in prescribing of rules and regulations thereunder, or in securing information to serve as a basis for recommending further legislation concerning real estate settlement practices. To aid in the investigations, the Bureau is authorized to hold such hearings, administer such oaths, and require by subpena the attendance and testimony of such witnesses and production of such documents as the Bureau deems advisable.
(2)Any district court of the United States within the jurisdiction of which an inquiry is carried on may, in the case of contumacy or refusal to obey a subpena of the Bureau issued under this section, issue an order requiring compliance therewith; and any failure to obey such order of the court may be punished by such court as a contempt thereof.
(d)Delay of effectiveness of recent final regulation relating to payments to employees
(1)In general
The amendment to part 3500 of title 24 of the Code of Federal Regulations contained in the final regulation prescribed by the Secretary and published in the Federal Register on June 7, 1996, which will, as of the effective date of such amendment—
(A)eliminate the exemption for payments by an employer to employees of such employer for referral activities which is currently codified as section 3500.14(g)(1)(vii) of such title 24; and
(B)replace such exemption with a more limited exemption in new clauses (vii), (viii), and (ix) of section 3500.14 of such title 24,
shall not take effect before July 31, 1997.
(2)Continuation of prior rule
The regulation codified as section 3500.14(g)(1)(vii) of title 24 of the Code of Federal Regulations, relating to employer-employee payments, as in effect on May 1, 1996, shall remain in effect until the date the amendment referred to in paragraph (1) takes effect in accordance with such paragraph.
(3)Public notice of effective date
The Secretary shall provide public notice of the date on which the amendment referred to in paragraph (1) will take effect in accordance with such paragraph not less than 90 days and not more than 180 days before such effective date.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Pub. L. 111–203, § 1098(11)(A), substituted “Bureau” for “Secretary” in section catchline. Subsec. (a). Pub. L. 111–203, § 1098(11)(B), substituted “Bureau” for “Secretary”. Subsecs. (b), (c). Pub. L. 111–203, § 1098(11)(C), substituted “the Bureau” for “the Secretary” wherever appearing. 1996—Subsec. (d). Pub. L. 104–208 added subsec. (d). 1983—Subsec. (c). Pub. L. 98–181 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by 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.

Effective Date

of 1983 AmendmentAmendment by Pub. L. 98–181 effective Jan. 1, 1984, see section 461(f) of Pub. L. 98–181, set out as a note under section 2602 of this title.

Effective Date

Section effective Jan. 2, 1976, see section 12 of Pub. L. 94–205, set out as an

Effective Date

of 1976 Amendment note under section 2602 of this title.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2617

Title 12, Banks and Banking

Last Updated

Sep 23, 2026

Release point: 119-110