124 STAT. 2178 PUBLIC LAW 111–203—JULY 21, 2010 (2) that the borrower may be approached during the fore- closure process by persons regarding saving their home and they should use caution in any such dealings; (3) that there are Federal Government and nonprofit agen- cies that may provide information about the foreclosure process, including the Department of Housing and Urban Development; (4) that they should contact their lender immediately, con- tact the Department of Housing and Urban Development to find a housing counseling agency certified by the Department to assist in avoiding foreclosure, or visit the Department’s website regarding tips for avoiding foreclosure; and (5) of the telephone number of the loan servicer or suc- cessor, the telephone number of the Department of Housing and Urban Development housing counseling line, and the Uni- form Resource Locators (URLs) for the Department of Housing and Urban Development Web sites for housing counseling and for tips for avoiding foreclosure. Subtitle E—Mortgage Servicing SEC. 1461. ESCROW AND IMPOUND ACCOUNTS RELATING TO CERTAIN CONSUMER CREDIT TRANSACTIONS. (a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after section 129C (as added by section 1411) the following new section: ‘‘§ 129D. Escrow or impound accounts relating to certain con- sumer credit transactions ‘‘(a) IN GENERAL.—Except as provided in subsection (b), (c), (d), or (e), a creditor, in connection with the consummation of a consumer credit transaction secured by a first lien on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, shall establish, before the consummation of such transaction, an escrow or impound account for the payment of taxes and hazard insurance, and, if applicable, flood insurance, mortgage insurance, ground rents, and any other required periodic payments or premiums with respect to the property or the loan terms, as provided in, and in accordance with, this section. ‘‘(b) WHEN REQUIRED.—No impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to the property may be required as a condition of a real property sale contract or a loan secured by a first deed of trust or mortgage on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, except when— ‘‘(1) any such impound, trust, or other type of escrow or impound account for such purposes is required by Federal or State law; ‘‘(2) a loan is made, guaranteed, or insured by a State or Federal governmental lending or insuring agency; ‘‘(3) the transaction is secured by a first mortgage or lien on the consumer’s principal dwelling having an original prin- cipal obligation amount that— ‘‘(A) does not exceed the amount of the maximum limitation on the original principal obligation of mortgage 15 USC 1639d.
