---
kind: "section"
citation: "12 U.S.C. § 4903"
title: "12"
title_heading: "Banks and Banking"
number: "4903"
heading: "Disclosure requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4903"
units:
  - "Chapter 49 — Homeowners Protection"
---

# §4903. Disclosure requirements

- (a) **Disclosures for new mortgages at time of transaction—**
  - (1) **Disclosures for non-exempted transactions—** In any case in which [private mortgage insurance](/usc/12/4901.md?p=13) is required in connection with a [residential mortgage transaction](/usc/12/4901.md?p=15) (other than a [residential mortgage transaction](/usc/12/4901.md?p=15) described in [section 4902(g)(1) of this title](/usc/12/4902.md?p=g-1)), at the time at which the transaction is consummated, the [mortgagee](/usc/12/4901.md?p=10) shall provide to the [mortgagor](/usc/12/4901.md?p=11)—
    - (A) if the transaction relates to a [fixed rate mortgage](/usc/12/4901.md?p=3)—
      - (i) a written [initial amortization schedule](/usc/12/4901.md?p=5); and
      - (ii) written notice—
        - (I) that the [mortgagor](/usc/12/4901.md?p=11) may cancel the requirement in accordance with [section 4902(a) of this title](/usc/12/4902.md?p=a) indicating the date on which the [mortgagor](/usc/12/4901.md?p=11) may request cancellation, based solely on the [initial amortization schedule](/usc/12/4901.md?p=5);
        - (II) that the [mortgagor](/usc/12/4901.md?p=11) may request cancellation in accordance with [section 4902(a) of this title](/usc/12/4902.md?p=a) earlier than provided for in the [initial amortization schedule](/usc/12/4901.md?p=5), based on actual payments;
        - (III) that the requirement for [private mortgage insurance](/usc/12/4901.md?p=13) will automatically terminate on the [termination date](/usc/12/4901.md?p=18) in accordance with [section 4902(b) of this title](/usc/12/4902.md?p=b), and what that [termination date](/usc/12/4901.md?p=18) is with respect to that [mortgage](/usc/12/1707.md?p=a); and
        - (IV) that there are exemptions to the right to cancellation and automatic termination of a requirement for [private mortgage insurance](/usc/12/4901.md?p=13) in accordance with [section 4902(g) of this title](/usc/12/4902.md?p=g), and whether such an exemption applies at that time to that transaction; and
    - (B) if the transaction relates to an [adjustable rate mortgage](/usc/12/4901.md?p=1), a written notice that—
      - (i) the [mortgagor](/usc/12/4901.md?p=11) may cancel the requirement in accordance with [section 4902(a) of this title](/usc/12/4902.md?p=a) on the [cancellation date](/usc/12/4901.md?p=2), and that the [servicer](/usc/12/4901.md?p=16) will notify the [mortgagor](/usc/12/4901.md?p=11) when the [cancellation date](/usc/12/4901.md?p=2) is reached;
      - (ii) the requirement for [private mortgage insurance](/usc/12/4901.md?p=13) will automatically terminate on the [termination date](/usc/12/4901.md?p=18), and that on the [termination date](/usc/12/4901.md?p=18), the [mortgagor](/usc/12/4901.md?p=11) will be notified of the termination or that the requirement will be terminated as soon as the [mortgagor](/usc/12/4901.md?p=11) is current on loan payments; and
      - (iii) there are exemptions to the right of cancellation and automatic termination of a requirement for [private mortgage insurance](/usc/12/4901.md?p=13) in accordance with [section 4902(g) of this title](/usc/12/4902.md?p=g), and whether such an exemption applies at that time to that transaction.
  - (2) **Disclosures for excepted transactions—** In the case of a [residential mortgage transaction](/usc/12/4901.md?p=15) described in [section 4902(g)(1) of this title](/usc/12/4902.md?p=g-1), at the time at which the transaction is consummated, the [mortgagee](/usc/12/4901.md?p=10) shall provide written notice to the [mortgagor](/usc/12/4901.md?p=11) that in no case may [private mortgage insurance](/usc/12/4901.md?p=13) be required beyond the date that is the [midpoint of the amortization period](/usc/12/4901.md?p=7) of the loan, if the [mortgagor](/usc/12/4901.md?p=11) is current on payments required by the terms of the [residential mortgage](/usc/12/4901.md?p=14).
  - (3) **Annual disclosures—** If [private mortgage insurance](/usc/12/4901.md?p=13) is required in connection with a [residential mortgage transaction](/usc/12/4901.md?p=15), the [servicer](/usc/12/4901.md?p=16) shall disclose to the [mortgagor](/usc/12/4901.md?p=11) in each such transaction in an annual written statement—
    - (A) the rights of the [mortgagor](/usc/12/4901.md?p=11) under this chapter to cancellation or termination of the [private mortgage insurance](/usc/12/4901.md?p=13) requirement; and
    - (B) an address and telephone number that the [mortgagor](/usc/12/4901.md?p=11) may use to contact the [servicer](/usc/12/4901.md?p=16) to determine whether the [mortgagor](/usc/12/4901.md?p=11) may cancel the [private mortgage insurance](/usc/12/4901.md?p=13).
  - (4) **Applicability—** Paragraphs [(1)](#a-1) through [(3)](#a-3) shall apply with respect to each [residential mortgage transaction](/usc/12/4901.md?p=15) consummated on or after the date that is 1 year after July 29, 1998.
- (b) **Disclosures for existing mortgages—** If [private mortgage insurance](/usc/12/4901.md?p=13) was required in connection with a [residential mortgage](/usc/12/4901.md?p=14) entered into at any time before the effective date of this chapter, the [servicer](/usc/12/4901.md?p=16) shall disclose to the [mortgagor](/usc/12/4901.md?p=11) in each such transaction in an annual written statement—
  - (1) that the [private mortgage insurance](/usc/12/4901.md?p=13) may, under certain circumstances, be canceled by the [mortgagor](/usc/12/4901.md?p=11) (with the consent of the [mortgagee](/usc/12/4901.md?p=10) or in accordance with applicable [State](/usc/12/1707.md?p=d) law); and
  - (2) an address and telephone number that the [mortgagor](/usc/12/4901.md?p=11) may use to contact the [servicer](/usc/12/4901.md?p=16) to determine whether the [mortgagor](/usc/12/4901.md?p=11) may cancel the [private mortgage insurance](/usc/12/4901.md?p=13).
- (c) **Inclusion in other annual notices—** The information and disclosures required under [subsection (b)](#b) and [subsection (a)(3)](#a-3) may be provided on the annual disclosure relating to the escrow account made as required under the [Real Estate](/usc/12/1707.md?p=g) Settlement Procedures Act of 1974 [[12 U.S.C. 2601](/usc/12/2601.md) et seq.], or as part of the annual disclosure of interest payments made pursuant to Internal Revenue Service regulations, and on a form promulgated by the Internal Revenue Service for that purpose.
- (d) **Standardized forms—** The [mortgagee](/usc/12/4901.md?p=10) or [servicer](/usc/12/4901.md?p=16) may use standardized forms for the provision of disclosures required under this section, which disclosures shall relate to the [mortgagor](/usc/12/4901.md?p=11)’s rights under this chapter.

## Source credit

(Pub. L. 105–216, § 4, July 29, 1998, 112 Stat. 902; Pub. L. 106–569, title IV, §§ 402(c)(2), 403(b), Dec. 27, 2000, 114 Stat. 2957.)

## Notes

### Editorial Notes

### References in Text

The effective date of this chapter, referred to in subsec. (b), is 1 year after July 29, 1998, see section 13 of Pub. L. 105–216, set out as an Effective Date note under section 4901 of this title.

The Real Estate Settlement Procedures Act of 1974, referred to in subsec. (c), is Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§ 2601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2601 of this title and Tables.

### Amendments

2000—Subsec. (a)(1). Pub. L. 106–569, §§ 402(c)(2)(A)(i), 403(b)(1)(A), substituted “residential mortgage transaction (other than a residential mortgage transaction described in section 4902(g)(1) of this title)” for “residential mortgage or mortgage transaction (other than a mortgage or mortgage transaction described in section 4902(f)(1) of this title)” in introductory provisions.

Subsec. (a)(1)(A)(ii)(IV), (B)(iii). Pub. L. 106–569, § 402(c)(2)(A)(ii), (iii), substituted “section 4902(g) of this title” for “section 4902(f) of this title”.

Subsec. (a)(2). Pub. L. 106–569, §§ 402(c)(2)(B), 403(b)(1)(B), substituted “residential mortgage transaction” for “mortgage or mortgage transaction” and “section 4902(g)(1) of this title” for “section 4902(f)(1) of this title”.

Subsec. (c). Pub. L. 106–569, § 403(b)(2), substituted “subsection (a)(3)” for “paragraphs (1)(B) and (3) of subsection (a)”.

Subsec. (d). Pub. L. 106–569, § 403(b)(3), inserted before period at end “, which disclosures shall relate to the mortgagor’s rights under this chapter”.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 1 year after July 29, 1998, see section 13 of Pub. L. 105–216, set out as a note under section 4901 of this title.