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or agency of the Federal Government unless it is so demon2 strated that the settlement charges imposed in connection 3 with such mortgage or loan are within such maximum 4 amounts. In accordance with such regulations, the financial 5 institution making any such loan shall obtain such informa6 tion and assurances from persons who impose or intend to 7 impose charges which will constitute a part of the settle8 ment costs as may be necessary to comply with this sub9 section.

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(c) (1) If any financial institution makes a federally11 related mortgage loan and the settlement charges imposed 12 in connection with such loan are in excess of the applicable 13 maximum amounts established under subsection (a), such 14 institution is liable to the buyer of the property involved 15 in an amount equal to—

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(A) actual damages resulting or $500, whichever is higher, and

(B) in the case of any successful action to enforce

19 the foregoing liability, the costs of the action together

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with a reasonable attorney's fee as determined by the

court.

(2) If a real estate settlement for which any financial 23 institution has agreed to make a federally-related mortgage

24 loan to a prospective buyer does not occur because

(A) a Federal officer or agency which proposed to

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insure, guarantee, supplement, or assist such loan refuses,

pursuant to subsection (b), to do so, or

(B) such institution refuses to make the loan because any person who is furnishing services incident to

or a part of such settlement furnishes such services at a

charge in excess of the applicable maximum amount established under subsection (a),

8 then such prospective buyer is not liable to any person for 9 any services rendered incident to or a part of such settle10 ment.

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(d) This section shall not be deemed to alter, super12 sede, or otherwise affect the laws of any State which regulate 13 the business of title insurance within that State except to 14 the extent that such laws are inconsistent with this section; 15 and the provisions of the Act of March 9, 1945 (15 U.S.C. 16 1011 et seq.), relating to regulation by such State laws shall 17 be deemed to remain in full force and effect (with respect 18 to such business) for their intended purposes.

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(e) Section 701 of the Emergency Home Finance Act

20 of 1970 is repealed.

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UNIFORM SETTLEMENT STATEMENT

SEC. 903. The Secretary, in consultation with the Ad

23 ministrator of Veterans' Affairs, the Federal Deposit Insur24 ance Corporation, and the Federal Home Loan Bank Board, 25 shall develop and prescribe a single standardized form for

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1 the statement of settlement costs which shall be uniformly 2 used (with only such minimum variations, in different areas, 3 as may be necessary to reflect unavoidable differences in 4 legal and administrative requirements) as the standard real 5 estate settlement form in all transactions in the United States 6 which involve federally related mortgage loans. Such form 7 shall conspicuously and clearly itemize the charges imposed 8 upon both the buyer and the seller in connection with the 9 settlement, and shall indicate that portion of any title insur ance for which a premium is included in such charges which

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covers or insures the mortgagee's interest in the property 12 and the portion which covers or insures the buyer's interest.

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SPECIAL INFORMATION BOOKLETS

14 SEC. 904. (a) The Secretary shall prepare and dis15 tribute special booklets to help persons borrowing money 16 to finance the purchase of residential real estate to better 17 understand the nature and cost of real estate settlements. 18 The Secretary shall distribute such booklets to all financial 19 institutions which make federally related mortgage loans. (b) Each booklet shall be in such form and detail as 21 the Secretary shall prescribe and, in addition to such other 22 information as the Secretary may provide, shall include in 23 clear and concise language—

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(1) a description and explanation of the nature

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and purpose of each cost incident to a real estate settle

ment;

(2) an itemized list indicating the maximum amounts of the charges which a buyer should be pre

pared to pay in connection with a real estate settlement

as established under section 902 (a), taking into consideration the actual cost of performing each service;

(3) an explanation and sample of the standard real estate settlement form developed and prescribed under section 903;

and

(4) a description and explanation of the nature

purpose of escrow accounts when used in connection with loans secured by residential real estate;

(5) an explanation of the appropriate manner by which buyers of residential real estate may select persons to provide necessary services incident to a real estate settlement; and

(6) an explanation of the unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement.

22 Such booklets shall take into consideration differences in 23 real estate settlement procedure which may exist between 24 the several States and territories of the United States and 25 between separate political subdivisions within the same State

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1 and territory as a result of legal and administrative require

2 ments.

3 (c) Each financial institution referred to in subsection 4 (a) shall provide the booklet described in such subsection 5 to each person making an application to borrow money to 6 finance the purchase of residential real estate. Such booklet 7 shall be provided at the time such person makes such appli8 cation and again at the time the itemized list of charges 9 described in section 905 (a) is provided to such person.

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(d) (1) The Comptroller General of the United States 11 (hereinafter referred to in this subsection as the "Comptroller 12 General") shall, on a continual basis—

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(A) review the charges listed pursuant to paragraph (2) of subsection (b) in the special information booklets provided by the Secretary pursuant to this section, and evaluate the accuracy of such charges;

(B) review and evaluate the procedures used by

the Secretary to arrive at such charges; and

(C) determine if such procedures are in conformity

with the provisions of this section.

(2) The Comptroller General shall make the results of

22 such reviews, evaluations, and determinations available t

23 Congress in the form of reports transmitted to Congress OK