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124 STAT. 2182 PUBLIC LAW 111–203—JULY 21, 2010

‘‘(A) Information concerning any applicable fees or costs
associated with either the non-establishment of any such
account at the time of the transaction, or any subsequent
closure of any such account.
‘‘(B) A clear and prominent statement that the con-
sumer is responsible for personally and directly paying
the non-escrowed items, in addition to paying the mortgage
loan payment, in the absence of any such account, and
the fact that the costs for taxes, insurance, and related
fees can be substantial.
‘‘(C) A clear explanation of the consequences of any
failure to pay non-escrowed items, including the possible
requirement for the forced placement of insurance by the
creditor or servicer and the potentially higher cost
(including any potential commission payments to the
servicer) or reduced coverage for the consumer in the event
of any such creditor-placed insurance.
‘‘(D) Such other information as the Board determines
necessary for the protection of the consumer.’’.

SEC. 1463. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974
AMENDMENTS.
(a) SERVICER PROHIBITIONS.—Section 6 of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended
by adding at the end the following new subsections:
‘‘(k) SERVICER PROHIBITIONS.—
‘‘(1) IN GENERAL.—A servicer of a federally related mortgage
shall not—
‘‘(A) obtain force-placed hazard insurance unless there
is a reasonable basis to believe the borrower has failed
to comply with the loan contract’s requirements to maintain
property insurance;
‘‘(B) charge fees for responding to valid qualified writ-
ten requests (as defined in regulations which the Bureau
of Consumer Financial Protection shall prescribe) under
this section;
‘‘(C) fail to take timely action to respond to a borrower’s
requests to correct errors relating to allocation of payments,
final balances for purposes of paying off the loan, or
avoiding foreclosure, or other standard servicer’s duties;
Deadline. ‘‘(D) fail to respond within 10 business days to a
request from a borrower to provide the identity, address,
and other relevant contact information about the owner
or assignee of the loan; or
‘‘(E) fail to comply with any other obligation found
by the Bureau of Consumer Financial Protection, by regula-
tion, to be appropriate to carry out the consumer protection
purposes of this Act.
‘‘(2) FORCE-PLACED INSURANCE DEFINED.—For purposes of
this subsection and subsections (l) and (m), the term ‘force-
placed insurance’ means hazard insurance coverage obtained
by a servicer of a federally related mortgage when the borrower
has failed to maintain or renew hazard insurance on such
property as required of the borrower under the terms of the

LAWS mortgage. ‘‘(l) REQUIREMENTS FOR FORCE-PLACED INSURANCE.—A servicer of a federally related mortgage shall not be construed as havingPUBLIC with on anorris VerDate Nov 24 2008 04:10 Sep 04, 2010 Jkt 089139 PO 00203 Frm 00808 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203