Borrowers' Right to Inspect Closing Documents Act of 2009 - Amends the Real Estate Settlement Procedures Act of 1974 (RESPA) to revise procedures governing the furnishing of closing documents to borrowers.
Requires the lender to furnish to the settlement agent, at least four business days before the scheduled date of a real estate settlement, the completed promissory note, the mortgage instrument, and all other items needed to complete the uniform settlement statement, the final Truth-in-Lending Act disclosure, and the final closing instructions.
Requires the settlement agent to furnish the borrower, at least three business days before the scheduled settlement date, with the completed documents and the completed uniform settlement statement, as long as the lender has timely provided the agent with those items.
Shields the settlement agent from liability for the lender's noncompliance with this Act. Cites circumstances under which the settlement agent may correct the uniform settlement statement and related documents prior to the scheduled settlement date.
Authorizes the Secretary of Housing and Urban Development to exempt settlements from the requirements of this Act in certain circumstances.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4229 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4229
To amend the Real Estate Settlement Procedures Act of 1974 to ensure
that borrowers under federally related mortgage loans have an
opportunity to inspect closing documents.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 8, 2009
Ms. Bean (for herself and Mrs. Capito) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Real Estate Settlement Procedures Act of 1974 to ensure
that borrowers under federally related mortgage loans have an
opportunity to inspect closing documents.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Borrowers' Right to Inspect Closing
Documents Act of 2009''.
SEC. 2. FURNISHING OF CLOSING DOCUMENTS TO BORROWER.
Section 4 of the Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2603) is amended by striking subsection (b) and inserting the
following new subsection:
``(b) Furnishing of Closing Documents to Borrower Three Days Before
Settlement.--
``(1) Lender responsibilities.--The lender shall furnish to
the person conducting the settlement (in this subsection
referred to as the `settlement agent'), at least four business
days before the scheduled date of settlement, the completed
promissory note, deed of trust or other mortgage instrument, as
the case may be, all items that are needed to complete the
uniform settlement statement, the final Truth-in-Lending Act
disclosure, and the final closing instructions.
``(2) Furnishing of closing documents to borrowers.--
``(A) Requirement.--Except as provided in
paragraphs (3) and (4), the settlement agent shall
furnish to the borrower, at least three business days
preceding the scheduled date of settlement and using
the method selected by the borrower pursuant to
subparagraph (B) of this paragraph--
``(i) the completed documents set forth in
paragraph (1), except for the final closing
instructions, and
``(ii) the completed uniform settlement
statement,
as long as the lender has timely provided the requisite
items and documents to the settlement agent. The
settlement agent shall not be responsible for the
lender's failure to comply with paragraph (1).
``(B) Methods of furnishing documents.--The
borrower may select to have the documents required
under subparagraph (A) furnished by--
``(i) electronic mail, subject to the
Electronic Signatures in Global and National
Commerce Act (15 U.S.C. 7001 et seq.);
``(ii) telephone facsimile machine; or
``(iii) making the documents available for
personal inspection at the office of the
settlement agent and providing a copy of the
documents to the borrower to retain.
``(3) Corrections.--
``(A) In general.--Notwithstanding any provision of
paragraph (2) to the contrary, the settlement agent may
make corrections to the uniform settlement statement
and any related documents prior to the scheduled date
of settlement, if--
``(i) an update of the title search and
examination of the prospective mortgaged
property reveals any defects, liens,
encumbrances, or other matters not discovered
in previous searches;
``(ii) subject to the lender's approval,
the borrower's inspection of the prospective
mortgaged property requires financial
adjustments;
``(iii) the borrower and lender agree to
make material changes to the loan transaction;
or
``(iv) any other permissible corrections,
as identified by regulation by the Secretary,
are made.
``(B) Timing.--The requirement under paragraph (2)
to provide completed documents and the completed
settlement statement at least three business days
before settlement shall not apply to any uniform
settlement statement and related documents corrected
pursuant to subparagraph (A) of this paragraph.
``(4) Exemption by secretary.--The Secretary may exempt
from the requirements of this subsection the following
settlements:
``(A) Settlements occurring in localities where the
final settlement statement is not customarily provided
at or before the date of settlement.
``(B) Settlements under which compliance with the
requirements of this subsection is impractical.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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