Page 804

124 STAT. 2178 PUBLIC LAW 111–203—JULY 21, 2010

(2) that the borrower may be approached during the fore-
closure process by persons regarding saving their home and
they should use caution in any such dealings;
(3) that there are Federal Government and nonprofit agen-
cies that may provide information about the foreclosure process,
including the Department of Housing and Urban Development;
(4) that they should contact their lender immediately, con-
tact the Department of Housing and Urban Development to
find a housing counseling agency certified by the Department
to assist in avoiding foreclosure, or visit the Department’s
website regarding tips for avoiding foreclosure; and
(5) of the telephone number of the loan servicer or suc-
cessor, the telephone number of the Department of Housing
and Urban Development housing counseling line, and the Uni-
form Resource Locators (URLs) for the Department of Housing
and Urban Development Web sites for housing counseling and
for tips for avoiding foreclosure.

Subtitle E—Mortgage Servicing

SEC. 1461. ESCROW AND IMPOUND ACCOUNTS RELATING TO CERTAIN
CONSUMER CREDIT TRANSACTIONS.
(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129C
(as added by section 1411) the following new section:

15 USC 1639d. ‘‘§ 129D. Escrow or impound accounts relating to certain con-
sumer credit transactions
‘‘(a) IN GENERAL.—Except as provided in subsection (b), (c),
(d), or (e), a creditor, in connection with the consummation of
a consumer credit transaction secured by a first lien on the principal
dwelling of the consumer, other than a consumer credit transaction
under an open end credit plan or a reverse mortgage, shall establish,
before the consummation of such transaction, an escrow or impound
account for the payment of taxes and hazard insurance, and, if
applicable, flood insurance, mortgage insurance, ground rents, and
any other required periodic payments or premiums with respect
to the property or the loan terms, as provided in, and in accordance
with, this section.
‘‘(b) WHEN REQUIRED.—No impound, trust, or other type of
account for the payment of property taxes, insurance premiums,
or other purposes relating to the property may be required as
a condition of a real property sale contract or a loan secured
by a first deed of trust or mortgage on the principal dwelling
of the consumer, other than a consumer credit transaction under
an open end credit plan or a reverse mortgage, except when—
‘‘(1) any such impound, trust, or other type of escrow or
impound account for such purposes is required by Federal
or State law;
‘‘(2) a loan is made, guaranteed, or insured by a State
or Federal governmental lending or insuring agency;
‘‘(3) the transaction is secured by a first mortgage or lien
on the consumer’s principal dwelling having an original prin-

LAWS cipal obligation amount that— ‘‘(A) does not exceed the amount of the maximum limitation on the original principal obligation of mortgagePUBLIC with on anorris VerDate Nov 24 2008 04:10 Sep 04, 2010 Jkt 089139 PO 00203 Frm 00804 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203