Closing Cost Reduction Act

Summary

Closing Cost Reduction Act - Expresses the findings of Congress that consumers must be protected from abusive real estate transaction practices which have resulted in unreasonably high settlement charges. Sets forth the definitions of terms used in this Act. Directs the Secretary of Housing and Urban Development, in consultation with specified authorities, to establish the maximum amounts of charges to be imposed on the borrower and seller incident to real estate settlement. Provides that no lender shall make or insure a federally related mortgage loan unless it is in accordance with the Secretary's settlement charge regulations. Sets forth the liabilities of a lender making a loan where the settlement charges are in excess of the maximum amounts. Requires the Secretary to prescribe a standardized form for the statement of all settlement costs to be used in all transactions which involve federally related mortgage loans. Directs the Secretary to prepare special booklets to aid persons in understanding the nature of residential real estate settlements. Enumerates specified materials to be included in such booklet. Makes it the duty of any lender to disclose to the prospective borrower, seller and Federal agency to those charges arising in connection with the settlement. Prescribes penalties for failure to provide such disclosures. Prohibits kickbacks in connection with any real estate settlement. Prohibits receipt of title insurance commissions by the attorneys. States that no fee shall be imposed for the preparation of truth-in-lending statements. Directs the Secretary to establish a computerized system in various areas for the recordation of land parcels. Provides that no title company shall issue title insurance as part of any real estate settlement under specified circumstances.

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1 official file

• Introduced in House

  summary · EN · 30 October 1973

  Open at official source

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