---
kind: "section"
citation: "15 U.S.C. § 1638"
title: "15"
title_heading: "Commerce and Trade"
number: "1638"
heading: "Transactions other than under an open end credit plan"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1638"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part B — Credit Transactions"
---

# §1638. Transactions other than under an open end credit plan

- (a) **Required disclosures by creditor—** For each [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction other than under an [open end credit plan](/usc/15/1602.md?p=j), the [creditor](/usc/15/1602.md?p=g) shall disclose each of the following items, to the extent applicable:
  - (1) The identity of the [creditor](/usc/15/1602.md?p=g) required to make disclosure.
  - (2)
    - (A) The “amount financed”, using that term, which shall be the amount of [credit](/usc/15/1602.md?p=f) of which the [consumer](/usc/15/1681a.md?p=c) has actual use. This amount shall be computed as follows, but the computations need not be disclosed and shall not be disclosed with the disclosures conspicuously segregated in accordance with [subsection (b)(1)](#b-1):
      - (i) take the principal amount of the loan or the cash price less downpayment and trade-in;
      - (ii) add any charges which are not part of the finance charge or of the principal amount of the loan and which are financed by the [consumer](/usc/15/1681a.md?p=c), including the cost of any items excluded from the finance charge pursuant to [section 1605 of this title](/usc/15/1605.md); and
      - (iii) subtract any charges which are part of the finance charge but which will be paid by the [consumer](/usc/15/1681a.md?p=c) before or at the time of the consummation of the transaction, or have been withheld from the proceeds of the [credit](/usc/15/1602.md?p=f).
    - (B) In conjunction with the disclosure of the amount financed, a [creditor](/usc/15/1602.md?p=g) shall provide a statement of the [consumer](/usc/15/1681a.md?p=c)’s right to obtain, upon a written request, a written itemization of the amount financed. The statement shall include spaces for a “yes” and “no” indication to be initialed by the [consumer](/usc/15/1681a.md?p=c) to indicate whether the [consumer](/usc/15/1681a.md?p=c) wants a written itemization of the amount financed. Upon receiving an affirmative indication, the [creditor](/usc/15/1602.md?p=g) shall provide, at the time other disclosures are required to be furnished, a written itemization of the amount financed. For the purposes of this subparagraph, “itemization of the amount financed” means a disclosure of the following items, to the extent applicable:
      - (i) the amount that is or will be paid directly to the [consumer](/usc/15/1681a.md?p=c);
      - (ii) the amount that is or will be credited to the [consumer](/usc/15/1681a.md?p=c)’s [account](/usc/15/1681a.md?p=r-4) to discharge obligations owed to the [creditor](/usc/15/1602.md?p=g);
      - (iii) each amount that is or will be paid to third [persons](/usc/15/1602.md?p=e) by the [creditor](/usc/15/1602.md?p=g) on the [consumer](/usc/15/1681a.md?p=c)’s behalf, together with an identification of or reference to the third [person](/usc/15/1602.md?p=e); and
      - (iv) the total amount of any charges described in the preceding [subparagraph (A)(iii)](#a-2-A-iii).
  - (3) The “finance charge”, not itemized, using that term.
  - (4) The finance charge expressed as an “annual percentage rate”, using that term. This shall not be required if the amount financed does not exceed $75 and the finance charge does not exceed $5, or if the amount financed exceeds $75 and the finance charge does not exceed $7.50.
  - (5) The sum of the amount financed and the finance charge, which shall be termed the “total of payments”.
  - (6) The number, amount, and due dates or period of payments scheduled to repay the total of payments.
  - (7) In a sale of property or services in which the seller is the [creditor](/usc/15/1602.md?p=g) required to disclose pursuant to [section 1631(b) of this title](/usc/15/1631.md?p=b), the “total sale price”, using that term, which shall be the total of the cash price of the property or services, additional charges, and the finance charge.
  - (8) Descriptive explanations of the terms “amount financed”, “finance charge”, “annual percentage rate”, “total of payments”, and “total sale price” as specified by the [Bureau](/usc/15/1602.md?p=b). The descriptive explanation of “total sale price” shall include reference to the amount of the downpayment.
  - (9) Where the [credit](/usc/15/1602.md?p=f) is secured, a statement that a [security interest](/usc/15/1667.md?p=5) has been taken in (A) the property which is purchased as part of the [credit](/usc/15/1602.md?p=f) transaction, or (B) property not purchased as part of the [credit](/usc/15/1602.md?p=f) transaction identified by item or type.
  - (10) Any dollar charge or percentage amount which may be imposed by a [creditor](/usc/15/1602.md?p=g) solely on [account](/usc/15/1681a.md?p=r-4) of a late payment, other than a deferral or extension charge.
  - (11) A statement indicating whether or not the [consumer](/usc/15/1681a.md?p=c) is entitled to a rebate of any finance charge upon refinancing or prepayment in full pursuant to acceleration or otherwise, if the obligation involves a precomputed finance charge. A statement indicating whether or not a penalty will be imposed in those same circumstances if the obligation involves a finance charge computed from time to time by application of a rate to the unpaid principal balance.
  - (12) A statement that the [consumer](/usc/15/1681a.md?p=c) should refer to the appropriate contract document for any information such document provides about nonpayment, default, the right to accelerate the maturity of the debt, and prepayment rebates and penalties.
  - (13) In any [residential mortgage transaction](/usc/15/1602.md?p=x), a statement indicating whether a subsequent purchaser or assignee of the [consumer](/usc/15/1681a.md?p=c) may assume the debt obligation on its original terms and conditions.
  - (14) In the case of any variable interest rate [residential mortgage transaction](/usc/15/1602.md?p=x), in disclosures provided at application as prescribed by the [Bureau](/usc/15/1602.md?p=b) for a variable rate transaction secured by the [consumer](/usc/15/1681a.md?p=c)’s principal [dwelling](/usc/15/1602.md?p=w), at the option of the [creditor](/usc/15/1602.md?p=g), a statement that the periodic payments may increase or decrease substantially, and the maximum interest rate and payment for a $10,000 loan originated at a recent interest rate, as determined by the [Bureau](/usc/15/1602.md?p=b), assuming the maximum periodic increases in rates and payments under the program, or a historical example illustrating the effects of interest rate changes implemented according to the loan program.
  - (15) In the case of a [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction that is secured by the principal [dwelling](/usc/15/1602.md?p=w) of the [consumer](/usc/15/1681a.md?p=c), in which the extension of [credit](/usc/15/1602.md?p=f) may exceed the fair market value of the [dwelling](/usc/15/1602.md?p=w), a clear and conspicuous statement that—
    - (A) the interest on the portion of the [credit](/usc/15/1602.md?p=f) extension that is greater than the fair market value of the [dwelling](/usc/15/1602.md?p=w) is not tax deductible for Federal income tax purposes; and
    - (B) the [consumer](/usc/15/1681a.md?p=c) should consult a tax adviser for further information regarding the deductibility of interest and charges.
  - (16) In the case of a variable rate [residential mortgage loan](/usc/15/1602.md?p=dd-5) for which an escrow or impound [account](/usc/15/1681a.md?p=r-4) will be established for the payment of all applicable taxes, insurance, and assessments—
    - (A) the amount of initial monthly payment due under the loan for the payment of principal and interest, and the amount of such initial monthly payment including the monthly payment deposited in the [account](/usc/15/1681a.md?p=r-4) for the payment of all applicable taxes, insurance, and assessments; and
    - (B) the amount of the fully indexed monthly payment due under the loan for the payment of principal and interest, and the amount of such fully indexed monthly payment including the monthly payment deposited in the [account](/usc/15/1681a.md?p=r-4) for the payment of all applicable taxes, insurance, and assessments.
  - (17) In the case of a [residential mortgage loan](/usc/15/1602.md?p=dd-5), the aggregate amount of settlement charges for all settlement services provided in connection with the loan, the amount of charges that are included in the loan and the amount of such charges the borrower must pay at closing, the approximate amount of the wholesale rate of funds in connection with the loan, and the aggregate amount of other fees or required payments in connection with the loan.
  - (18) In the case of a [residential mortgage loan](/usc/15/1602.md?p=dd-5), the aggregate amount of fees paid to the [mortgage originator](/usc/15/1602.md?p=dd-2) in connection with the loan, the amount of such fees paid directly by the [consumer](/usc/15/1681a.md?p=c), and any additional amount received by the originator from the [creditor](/usc/15/1602.md?p=g).
  - (19) In the case of a [residential mortgage loan](/usc/15/1602.md?p=dd-5), the total amount of interest that the [consumer](/usc/15/1681a.md?p=c) will pay over the life of the loan as a percentage of the principal of the loan. Such amount shall be computed assuming the [consumer](/usc/15/1681a.md?p=c) makes each monthly payment in full and on-time, and does not make any over-payments.
- (b) **Form and timing of disclosures; residential mortgage transaction requirements—**
  - (1) Except as otherwise provided in this part, the disclosures required under [subsection (a)](#a) shall be made before the [credit](/usc/15/1602.md?p=f) is extended. Except for the disclosures required by [subsection (a)(1)](#a-1) of this section, all disclosures required under [subsection (a)](#a) and any disclosure provided for in subsection (b), (c), or (d) of [section 1605 of this title](/usc/15/1605.md) shall be conspicuously segregated from all other terms, data, or information provided in connection with a transaction, including any computations or itemization.
  - (2)
    - (A) Except as provided in [subparagraph (G)](#b-2-G), in the case of any extension of [credit](/usc/15/1602.md?p=f) that is secured by the [dwelling](/usc/15/1602.md?p=w) of a [consumer](/usc/15/1681a.md?p=c), which is also subject to the Real Estate Settlement Procedures Act [[12 U.S.C. 2601](/usc/12/2601.md) et seq.], good faith estimates of the disclosures required under [subsection (a)](#a) shall be made in accordance with regulations of the [Bureau](/usc/15/1602.md?p=b) under [section 1631(c) of this title](/usc/15/1631.md?p=c) and shall be delivered or placed in the mail not later than three business days after the [creditor](/usc/15/1602.md?p=g) receives the [consumer](/usc/15/1681a.md?p=c)’s written application, which shall be at least 7 business days before consummation of the transaction.
    - (B) In the case of an extension of [credit](/usc/15/1602.md?p=f) that is secured by the [dwelling](/usc/15/1602.md?p=w) of a [consumer](/usc/15/1681a.md?p=c), the disclosures provided under [subparagraph (A)](#b-2-A),[^1] shall be in addition to the other disclosures required by [subsection (a)](#a), and shall—
      - (i) [state](/usc/15/1602.md?p=s) in conspicuous type size and format, the following: “You are not required to complete this [agreement](/usc/15/7a.md?p=2) merely because you have received these disclosures or signed a loan application.”; and
      - (ii) be provided in the form of final disclosures at the time of consummation of the transaction, in the form and manner prescribed by this section.
    - (C) In the case of an extension of [credit](/usc/15/1602.md?p=f) that is secured by the [dwelling](/usc/15/1602.md?p=w) of a [consumer](/usc/15/1681a.md?p=c), under which the annual rate of interest is variable, or with respect to which the regular payments may otherwise be variable, in addition to the other disclosures required by [subsection (a)](#a), the disclosures provided under this subsection shall do the following:
      - (i) Label the payment schedule as follows: “Payment Schedule: Payments Will Vary Based on Interest Rate Changes”.
      - (ii) [State](/usc/15/1602.md?p=s) in conspicuous type size and format examples of adjustments to the regular required payment on the extension of [credit](/usc/15/1602.md?p=f) based on the change in the interest rates specified by the contract for such extension of [credit](/usc/15/1602.md?p=f). Among the examples required to be provided under this clause is an example that reflects the maximum payment amount of the regular required payments on the extension of [credit](/usc/15/1602.md?p=f), based on the maximum interest rate allowed under the contract, in accordance with the rules of the [Bureau](/usc/15/1602.md?p=b). Prior to issuing any rules pursuant to this clause, the [Bureau](/usc/15/1602.md?p=b) shall conduct [consumer](/usc/15/1681a.md?p=c) testing to determine the appropriate format for providing the disclosures required under this subparagraph to [consumers](/usc/15/1681a.md?p=c) so that such disclosures can be easily understood, including the fact that the initial regular payments are for a specific time period that will end on a certain date, that payments will adjust afterwards potentially to a higher amount, and that there is no guarantee that the borrower will be able to refinance to a lower amount.
    - (D) In any case in which the disclosure statement under [subparagraph (A)](#b-2-A) contains an annual percentage rate of interest that is no longer accurate, as determined under [section 1606(c) of this title](/usc/15/1606.md?p=c), the [creditor](/usc/15/1602.md?p=g) shall furnish an additional, corrected statement to the borrower, not later than 3 business days before the date of consummation of the transaction.
    - (E) The [consumer](/usc/15/1681a.md?p=c) shall receive the disclosures required under this paragraph before paying any fee to the [creditor](/usc/15/1602.md?p=g) or other [person](/usc/15/1602.md?p=e) in connection with the [consumer](/usc/15/1681a.md?p=c)’s application for an extension of [credit](/usc/15/1602.md?p=f) that is secured by the [dwelling](/usc/15/1602.md?p=w) of a [consumer](/usc/15/1681a.md?p=c). If the disclosures are mailed to the [consumer](/usc/15/1681a.md?p=c), the [consumer](/usc/15/1681a.md?p=c) is considered to have received them 3 business days after they are mailed. A [creditor](/usc/15/1602.md?p=g) or other [person](/usc/15/1602.md?p=e) may impose a fee for obtaining the [consumer](/usc/15/1681a.md?p=c)’s [credit](/usc/15/1602.md?p=f) report before the [consumer](/usc/15/1681a.md?p=c) has received the disclosures under this paragraph, provided the fee is bona fide and reasonable in amount.
    - (F) **Waiver of timeliness of disclosures.—** To expedite consummation of a transaction, if the [consumer](/usc/15/1681a.md?p=c) determines that the extension of [credit](/usc/15/1602.md?p=f) is needed to meet a bona fide personal financial emergency, the [consumer](/usc/15/1681a.md?p=c) may waive or modify the timing requirements for disclosures under [subparagraph (A)](#b-2-A), provided that—
      - (i) the term “bona fide personal emergency” may be further defined in regulations issued by the [Bureau](/usc/15/1602.md?p=b);
      - (ii) the [consumer](/usc/15/1681a.md?p=c) provides to the [creditor](/usc/15/1602.md?p=g) a dated, written statement describing the emergency and specifically waiving or modifying those timing requirements, which statement shall bear the signature of all [consumers](/usc/15/1681a.md?p=c) entitled to receive the disclosures required by this paragraph; and
      - (iii) the [creditor](/usc/15/1602.md?p=g) provides to the [consumers](/usc/15/1681a.md?p=c) at or before the time of such waiver or modification, the final disclosures required by [paragraph (1)](#b-1).
    - (G)
      - (i) In the case of an extension of [credit](/usc/15/1602.md?p=f) relating to a plan described in [section 101(53D)](/usc/11/101.md?p=53D) of title 11—
        - (I) the requirements of subparagraphs [(A)](#b-2-A) through [(E)](#b-2-E) shall not apply; and
        - (II) a good faith estimate of the disclosures required under [subsection (a)](#a) shall be made in accordance with regulations of the [Bureau](/usc/15/1602.md?p=b) under [section 1631(c) of this title](/usc/15/1631.md?p=c) before such [credit](/usc/15/1602.md?p=f) is extended, or shall be delivered or placed in the mail not later than 3 business days after the date on which the [creditor](/usc/15/1602.md?p=g) receives the written application of the [consumer](/usc/15/1681a.md?p=c) for such [credit](/usc/15/1602.md?p=f), whichever is earlier.
      - (ii) If a disclosure statement furnished within 3 business days of the written application (as provided under [clause (i)(II)](#b-2-G-i-II)) contains an annual percentage rate which is subsequently rendered inaccurate, within the meaning of [section 1606(c) of this title](/usc/15/1606.md?p=c), the [creditor](/usc/15/1602.md?p=g) shall furnish another disclosure statement at the time of settlement or consummation of the transaction.
  - (3) In the case of a [credit](/usc/15/1602.md?p=f) transaction described in [paragraph (15)](#a-15) of subsection (a), disclosures required by that paragraph shall be made to the [consumer](/usc/15/1681a.md?p=c) at the time of application for such extension of [credit](/usc/15/1602.md?p=f).
  - (4) **Repayment analysis required to include escrow payments.—**
    - (A) **In general.—** In the case of any [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction secured by a first mortgage or lien on the principal [dwelling](/usc/15/1602.md?p=w) of the [consumer](/usc/15/1681a.md?p=c), other than a [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction under an [open end credit plan](/usc/15/1602.md?p=j) or a reverse mortgage, for which an impound, trust, or other type of [account](/usc/15/1681a.md?p=r-4) has been or will be established in connection with the transaction for the payment of property taxes, hazard and flood (if any) insurance premiums, or other periodic payments or premiums with respect to the property, the information required to be provided under [subsection (a)](#a) with respect to the number, amount, and due dates or period of payments scheduled to repay the total of payments shall take into [account](/usc/15/1681a.md?p=r-4) the amount of any monthly payment to such [account](/usc/15/1681a.md?p=r-4) for each such repayment in accordance with section 10(a)(2) of the Real Estate Settlement Procedures Act of 1974 [[12 U.S.C. 2609(a)(2)](/usc/12/2609.md?p=a-2)].
    - (B) **Assessment value.—** The amount taken into [account](/usc/15/1681a.md?p=r-4) under [subparagraph (A)](#b-4-A) for the payment of property taxes, hazard and flood (if any) insurance premiums, or other periodic payments or premiums with respect to the property shall reflect the taxable assessed value of the real property securing the transaction after the consummation of the transaction, including the value of any improvements on the property or to be constructed on the property (whether or not such construction will be financed from the proceeds of the transaction), if known, and the replacement costs of the property for hazard insurance, in the initial year after the transaction.
- (c) **Timing of disclosures on unsolicited mailed or telephone purchase orders or loan requests—**
  - (1) If a [creditor](/usc/15/1602.md?p=g) receives a purchase order by mail or telephone without personal solicitation, and the cash price and the total sale price and the terms of financing, including the annual percentage rate, are set forth in the [creditor](/usc/15/1602.md?p=g)’s catalog or other printed material distributed to the public, then the disclosures required under [subsection (a)](#a) may be made at any time not later than the date the first payment is due.
  - (2) If a [creditor](/usc/15/1602.md?p=g) receives a request for a loan by mail or telephone without personal solicitation and the terms of financing, including the annual percentage rate for representative amounts of [credit](/usc/15/1602.md?p=f), are set forth in the [creditor](/usc/15/1602.md?p=g)’s printed material distributed to the public, or in the contract of loan or other printed material delivered to the obligor, then the disclosures required under [subsection (a)](#a) may be made at any time not later than the date the first payment is due.
- (d) **Timing of disclosure in cases of an addition of a deferred payment price to an existing outstanding balance—** If a [consumer](/usc/15/1681a.md?p=c) [credit sale](/usc/15/1602.md?p=h) is one of a series of [consumer](/usc/15/1681a.md?p=c) [credit sales](/usc/15/1602.md?p=h) transactions made pursuant to an [agreement](/usc/15/7a.md?p=2) providing for the addition of the deferred payment price of that sale to an existing outstanding balance, and the [person](/usc/15/1602.md?p=e) to whom the [credit](/usc/15/1602.md?p=f) is extended has approved in writing both the annual percentage rate or rates and the method of computing the finance charge or charges, and the [creditor](/usc/15/1602.md?p=g) retains no [security interest](/usc/15/1667.md?p=5) in any property as to which he has received payments aggregating the amount of the sales price including any finance charges attributable thereto, then the disclosure required under [subsection (a)](#a) for the particular sale may be made at any time not later than the date the first payment for that sale is due. For the purposes of this subsection, in the case of items purchased on different dates, the first purchased shall be deemed first paid for, and in the case of items purchased on the same date, the lowest price shall be deemed first paid for.
- (e) **Terms and disclosure with respect to private education loans—**
  - (1) **Disclosures required in private education loan applications and solicitations—** In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously—
    - (A) the potential range of rates of interest applicable to the private education loan;
    - (B) whether the rate of interest applicable to the private education loan is fixed or variable;
    - (C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
    - (D) requirements for a co-borrower, including any changes in the applicable interest rates without a co-borrower;
    - (E) potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late payments of the borrower;
    - (F) fees or range of fees applicable to the private education loan;
    - (G) the term of the private education loan;
    - (H) whether interest will accrue while the student to whom the private education loan relates is enrolled at a covered educational institution;
    - (I) payment deferral options;
    - (J) general eligibility criteria for the private education loan;
    - (K) an example of the total cost of the private education loan over the life of the loan—
      - (i) which shall be calculated using the principal amount and the maximum rate of interest actually offered by the private educational lender; and
      - (ii) calculated both with and without capitalization of interest, if an option exists for postponing interest payments;
    - (L) that a covered educational institution may have school-specific education loan benefits and terms not detailed on the disclosure form;
    - (M) that the borrower may qualify for Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 ([20 U.S.C. 1070](/usc/20/1070.md) et seq.), in lieu of, or in addition to, a loan from a non-Federal source;
    - (N) the interest rates available with respect to such Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 ([20 U.S.C. 1070](/usc/20/1070.md) et seq.);
    - (O) that, as provided in [paragraph (6)](#e-6)—
      - (i) the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan; and
      - (ii) except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in [clause (i)](#e-1-O-i);
    - (P) that, before a private education loan may be consummated, the borrower must obtain from the relevant institution of higher education the form required under [paragraph (3)](#e-3), and complete, sign, and return such form to the private educational lender;
    - (Q) that the [consumer](/usc/15/1681a.md?p=c) may obtain additional information concerning such Federal student financial assistance from their institution of higher education, or at the website of the Department of Education; and
    - (R) such other information as the [Bureau](/usc/15/1602.md?p=b) shall prescribe, by rule, as necessary or appropriate for [consumers](/usc/15/1681a.md?p=c) to make informed borrowing decisions.
  - (2) **Disclosures at the time of private education loan approval—** Contemporaneously with the approval of a private education loan application, and before the loan transaction is consummated, the private educational lender shall disclose to the borrower, clearly and conspicuously—
    - (A) the applicable rate of interest in effect on the date of approval;
    - (B) whether the rate of interest applicable to the private education loan is fixed or variable;
    - (C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
    - (D) the initial approved principal amount;
    - (E) applicable finance charges, late fees, penalties, and adjustments to principal, based on borrower defaults or late payments, including limitations on the discharge of a private education loan in bankruptcy;
    - (F) fees or range of fees applicable to the private education loan;
    - (G) the maximum term under the private education loan program;
    - (H) an estimate of the total amount for repayment, at both the interest rate in effect on the date of approval and at the maximum possible rate of interest offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof;
    - (I) any principal and interest payments required while the student for whom the private education loan is intended is enrolled at a covered educational institution and unpaid interest that will accrue during such enrollment;
    - (J) payment deferral options applicable to the borrower;
    - (K) whether monthly payments are graduated;
    - (L) that, as provided in [paragraph (6)](#e-6)—
      - (i) the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan; and
      - (ii) except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in [clause (i)](#e-2-L-i);
    - (M) that the borrower—
      - (i) may qualify for Federal financial assistance through a program under title IV of the Higher Education Act of 1965 ([20 U.S.C. 1070](/usc/20/1070.md) et seq.), in lieu of, or in addition to, a loan from a non-Federal source; and
      - (ii) may obtain additional information concerning such assistance from their institution of higher education or the website of the Department of Education;
    - (N) the interest rates available with respect to such Federal financial assistance through a program under title IV of the Higher Education Act of 1965 ([20 U.S.C. 1070](/usc/20/1070.md) et seq.);
    - (O) the maximum monthly payment, calculated using the maximum rate of interest actually offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof; and
    - (P) such other information as the [Bureau](/usc/15/1602.md?p=b) shall prescribe, by rule, as necessary or appropriate for [consumers](/usc/15/1681a.md?p=c) to make informed borrowing decisions.
  - (3) **Self-certification of information—**
    - (A) **In general—** Before a private educational lender may consummate a private education loan with respect to a student attending an institution of higher education, the lender shall obtain from the [applicant](/usc/15/1691a.md?p=b) for the private education loan the form developed by the [Secretary](/usc/15/1602.md?p=dd-6) of Education under section 155 of the Higher Education Act of 1965 [[20 U.S.C. 1019d](/usc/20/1019d.md)], signed by the [applicant](/usc/15/1691a.md?p=b), in written or electronic form.
    - (B) **Rule of construction—** No other provision of this subsection shall be construed to require a private educational lender to perform any additional duty under this paragraph, other than collecting the form required under [subparagraph (A)](#e-3-A).
  - (4) **Disclosures at the time of private education loan consummation—** Contemporaneously with the consummation of a private education loan, a private educational lender shall make to the borrower each of the disclosures described in—
    - (A) [paragraph (2)(A)](#e-2-A) (adjusted, as necessary, for the rate of interest in effect on the date of consummation, based on the index used for the loan);
    - (B) subparagraphs [(B)](#e-2-B) through [(K)](#e-2-K) and [(M)](#e-2-M) through [(P)](#e-2-P) of paragraph (2); and
    - (C) [paragraph (7)](#e-7).
  - (5) **Format of disclosures—**
    - (A) **Model form—** Not later than 2 years after August 14, 2008, the [Bureau](/usc/15/1602.md?p=b) shall, based on [consumer](/usc/15/1681a.md?p=c) testing, and in consultation with the [Secretary](/usc/15/1602.md?p=dd-6) of Education, develop and issue model forms that may be used, at the option of the private educational lender, for the provision of disclosures required under this subsection.
    - (B) **Format—** Model forms developed under this paragraph shall—
      - (i) be comprehensible to borrowers, with a clear format and design;
      - (ii) provide for clear and conspicuous disclosures;
      - (iii) enable borrowers easily to identify material terms of the loan and to compare such terms among private education loans; and
      - (iv) be succinct, and use an easily readable type font.
    - (C) **Safe harbor—** Any private educational lender that elects to provide a model form developed under this subsection that accurately reflects the practices of the private educational lender shall be deemed to be in compliance with the disclosures required under this subsection.
  - (6) **Effective period of approved rate of interest and loan terms—**
    - (A) **In general—** With respect to a private education loan, the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan, and the rates and terms of the loan may not be changed by the private educational lender during that period.
    - (B) **Prohibition on changes—** Except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender prior to the earlier of—
      - (i) the date of acceptance of the terms of the loan and consummation of the transaction by the borrower, as described in [subparagraph (A)](#e-6-A); or
      - (ii) the expiration of the period described in [subparagraph (A)](#e-6-A).
  - (7) **Right to cancel—** With respect to a private education loan, the borrower may cancel the loan, without penalty to the borrower, at any time within 3 business days of the date on which the loan is consummated, and the private educational lender shall disclose such right to the borrower in accordance with [paragraph (4)](#e-4).
  - (8) **Prohibition on disbursement—** No funds may be disbursed with respect to a private education loan until the expiration of the 3-day period described in [paragraph (7)](#e-7).
  - (9) **Bureau regulations—** In issuing regulations under this subsection, the [Bureau](/usc/15/1602.md?p=b) shall prevent, to the extent possible, duplicative disclosure requirements for private educational lenders that are otherwise required to make disclosures under this subchapter, except that in any case in which the disclosure requirements of this subsection differ or conflict with the disclosure requirements of any other provision of this subchapter, the requirements of this subsection shall be controlling.
  - (10) **Definitions—** For purposes of this subsection, the terms “covered educational institution”, “private educational lender”, and “private education loan” have the same meanings as in [section 1650 of this title](/usc/15/1650.md).
  - (11) **Duties of lenders participating in preferred lender arrangements—** Each private educational lender that has a preferred lender arrangement with a covered educational institution shall annually, by a date determined by the [Bureau](/usc/15/1602.md?p=b), in consultation with the [Secretary](/usc/15/1602.md?p=dd-6) of Education, provide to the covered educational institution such information as the [Bureau](/usc/15/1602.md?p=b) determines to include in the model form developed under [paragraph (5)](#e-5) for each type of private education loan that the lender plans to offer to students attending the covered educational institution, or to the families of such students, for the next award year (as that term is defined in section 481 of the Higher Education Act of 1965 [[20 U.S.C. 1088](/usc/20/1088.md)]).
- (f) **Periodic statements for residential mortgage loans—**
  - (1) **In general—** The [creditor](/usc/15/1602.md?p=g), assignee, or [servicer](/usc/15/1602.md?p=dd-7) with respect to any [residential mortgage loan](/usc/15/1602.md?p=dd-5) shall transmit to the obligor, for each billing cycle, a statement setting forth each of the following items, to the extent applicable, in a conspicuous and prominent manner:
    - (A) The amount of the principal obligation under the mortgage.
    - (B) The current interest rate in effect for the loan.
    - (C) The date on which the interest rate may next reset or adjust.
    - (D) The amount of any prepayment fee to be charged, if any.
    - (E) A description of any late payment fees.
    - (F) A telephone number and electronic mail address that may be used by the obligor to obtain information regarding the mortgage.
    - (G) The names, addresses, telephone numbers, and Internet addresses of counseling agencies or programs reasonably available to the [consumer](/usc/15/1681a.md?p=c) that have been certified or approved and made publicly available by the [Secretary](/usc/15/1602.md?p=dd-6) of Housing and Urban Development or a [State](/usc/15/1602.md?p=s) housing finance authority (as defined in [section 1441a–1 of title 12](/usc/12/1441a–1.md)).
    - (H) Such other information as the [Board](/usc/15/1602.md?p=c)[^2] may prescribe in regulations.
  - (2) **Development and use of standard form—** The [Board](/usc/15/1602.md?p=c)[^2] shall develop and prescribe a standard form for the disclosure required under this subsection, taking into [account](/usc/15/1681a.md?p=r-4) that the statements required may be transmitted in writing or electronically.
  - (3) **Exception—** [Paragraph (1)](#f-1) shall not apply to any fixed rate [residential mortgage loan](/usc/15/1602.md?p=dd-5) where the [creditor](/usc/15/1602.md?p=g), assignee, or [servicer](/usc/15/1602.md?p=dd-7) provides the obligor with a coupon book that provides the obligor with substantially the same information as required in [paragraph (1)](#f-1).

## Footnotes

[^1]: So in original. The comma probably should not appear.
[^2]: So in original. Probably should be “Bureau”.

## Source credit

(Pub. L. 90–321, title I, § 128, May 29, 1968, 82 Stat. 155; Pub. L. 96–221, title VI, § 614(a)–(c), Mar. 31, 1980, 94 Stat. 178, 179; Pub. L. 104–208, div. A, title II, § 2105, Sept. 30, 1996, 110 Stat. 3009–402; Pub. L. 109–8, title XIII, § 1302(b)(1), Apr. 20, 2005, 119 Stat. 208; Pub. L. 110–289, div. B, title V, § 2502(a), July 30, 2008, 122 Stat. 2855; Pub. L. 110–315, title X, § 1021(a), Aug. 14, 2008, 122 Stat. 3483; Pub. L. 110–343, div. A, title I, § 130(a), Oct. 3, 2008, 122 Stat. 3797; Pub. L. 111–203, title X, § 1100A(2), title XIV, §§ 1419, 1420, 1465, July 21, 2010, 124 Stat. 2107, 2154, 2155, 2185.)

## Notes

### Editorial Notes

### References in Text

The Real Estate Settlement Procedures Act, referred to in subsec. (b)(2)(A), probably refers to the Real Estate Settlement Procedures Act of 1974, 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.

The Higher Education Act of 1965, referred to in subsec. (e)(1)(M), (N), (2)(M)(i), (N), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§ 1070 et seq.) of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.

### Amendments

2010—Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board” wherever appearing.

Subsec. (a)(16) to (19). Pub. L. 111–203, § 1419, added pars. (16) to (19).

Subsec. (b)(4). Pub. L. 111–203, § 1465, added par. (4).

Subsec. (f). Pub. L. 111–203, § 1420, added subsec. (f).

2008—Subsec. (b)(2). Pub. L. 110–289, § 2502(a)(1), designated existing provisions as subpar. (A).

Subsec. (b)(2)(A). Pub. L. 110–343, § 130(a)(1), substituted “Except as provided in subparagraph (G), in the case” for “In the case”.

Pub. L. 110–289, § 2502(a)(5), (6), struck out “, whichever is earlier” after “consummation of the transaction” and “If the disclosure statement furnished within three days of the written application contains an annual percentage rate which is subsequently rendered inaccurate within the meaning of section 1606(c) of this title, the creditor shall furnish another statement at the time of settlement or consummation.” at the end.

Pub. L. 110–289, § 2502(a)(4), which directed insertion of “, which shall be at least 7 business days before consummation of the transaction” after “written application”, was executed by making the insertion after “written application” the first place appearing.

Pub. L. 110–289, § 2502(a)(2), (3), substituted “any extension of credit that is secured by the dwelling of a consumer” for “a residential mortgage transaction, as defined in section 1602(w) of this title” and “and” for “before the credit is extended, or”.

Subsec. (b)(2)(B) to (F). Pub. L. 110–289, § 2502(a)(6), added subpars. (B) to (F).

Subsec. (b)(2)(G). Pub. L. 110–343, § 130(a)(2), amended subpar. (G) generally. Prior to amendment, subpar. (G) read as follows: “The requirements of subparagraphs (B), (C), (D) and (E) shall not apply to extensions of credit relating to plans described in section 101(53D) of title 11.”

Pub. L. 110–289, § 2502(a)(6), added subpar. (G).

Subsec. (e). Pub. L. 110–315 added subsec. (e).

2005—Subsec. (a)(15). Pub. L. 109–8, § 1302(b)(1)(A), added par. (15).

Subsec. (b)(3). Pub. L. 109–8, § 1302(b)(1)(B), added par. (3).

1996—Subsec. (a)(14). Pub. L. 104–208 added par. (14).

1980—Subsec. (a). Pub. L. 96–221, § 614(a), substituted provisions setting forth required disclosures by the creditor for transactions other than under an open end credit plan, for provisions setting forth required disclosures by the creditor for sales not under open end credit plans.

Subsec. (b). Pub. L. 96–221, § 614(b), designated existing provisions as par. (1), inserted provisions relating to the conspicuous segregation of required disclosures, and struck out provisions authorizing the required information to be disclosed in the signed evidence of indebtedness, and added par. (2).

Subsec. (c). Pub. L. 96–221, § 614(c), designated existing provisions as par. (1), substituted “total sale” for “deferred payment”, and added par. (2).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by section 1100A(2) 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 sections 1419, 1420, and 1465 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 2008 Amendment

Pub. L. 110–343, div. A, title I, § 130(b), Oct. 3, 2008, 122 Stat. 3797, provided that: “The amendments made by subsection (a) [amending this section] shall take effect as if included in the amendments made by section 2502 of the Mortgage Disclosure Improvement Act of 2008 (Public Law 110–289) [amending this section and section 1640 of this title].”

Pub. L. 110–315, title X, § 1003, Aug. 14, 2008, 122 Stat. 3478, provided that: In General.—Except as provided in subsection (b) and as otherwise provided in this title [see Short Title of 2008 Amendment note set out under section 1601 of this title], this title and the amendments made by this title shall become effective on the date of enactment of this Act [Aug. 14, 2008]. Effect Notwithstanding Regulations.—Paragraphs (1), (2), (3), (4), (6), (7), and (8) of section 128(e) [15 U.S.C. 1638(e)] and section 140(c) of the Truth in Lending Act [15 U.S.C. 1650(c)], as added by this title, shall become effective on the earlier of the date on which regulations issued under section 1002 [set out as a note below] become effective [Such regulations were issued effective Sept. 14, 2009, with compliance optional until Feb. 14, 2010. See 74 F.R. 41194.] or 18 months after the date of enactment of this Act [Aug. 14, 2008].”

Pub. L. 110–289, div. B, title V, § 2502(c), July 30, 2008, 122 Stat. 2857, provided that: General disclosures.—Except as provided in paragraph (2), the amendments made by subsection (a) [amending this section] shall become effective 12 months after the date of enactment of this Act [July 30, 2008]. Variable interest rates.—Subparagraph (C) of section 128(b)(2) of the Truth in Lending Act (15 U.S.C. 1638(b)(2)(C)), as added by subsection (a) of this section, shall become effective on the earlier of— the compliance date established by the Board for such purpose, by regulation; or 30 months after the date of enactment of this Act [July 30, 2008].”

### Effective Date of 2005 Amendment

Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

### Effective Date of 1980 Amendment

Amendment 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.

### Regulations

Pub. L. 110–315, title X, § 1002, Aug. 14, 2008, 122 Stat. 3478, provided that: “Not later than 365 days after the date of enactment of this Act [Aug. 14, 2008], the Board of Governors of the Federal Reserve System shall issue regulations in final form to implement paragraphs (1), (2), (3), (4), (6), (7), and (8) of section 128(e) [15 U.S.C. 1638(e)] and section 140(c) of the Truth in Lending Act [15 U.S.C. 1650(c)], as added by this title, which regulations shall become effective not later than 6 months after their date of issuance.”