source:
  type: regulation
  id: reg-x-1024.2
  authority: 12 CFR §1024.2 — Definitions (Regulation X)
  description: 12 CFR §1024.2 — Definitions.
  coverage_tier: context
obligations:
- id: reg-x-1024.2-full
  canonical_id: reg-x-1024.2-full
  section: 12 CFR §1024.2 — Definitions
  type: reference
  tags:
  - regulator-direct
  - respa
  - corpus-expansion
  - tier-context
  primary_source:
    tier: 1
    authority: 12 CFR §1024.2 — Definitions
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.2
    snapshot_id: a59bfc1500c65e47
    fetched_at: '2026-06-17T17:21:37Z'
    content_hash: sha256:528a8099f8d32e3f2bef78d5e5a856358e4498f2382796a69d226193b83dc658
    paragraph_quote: '§ 1024.2 Definitions. (a) Statutory terms. All terms defined
      in RESPA ( 12 U.S.C. 2602 ) are used in accordance with their statutory meaning
      unless otherwise defined in paragraph (b) of this section or elsewhere in this
      part. (b) Other terms. As used in this part: Application means the submission
      of a borrower''s financial information in anticipation of a credit decision
      relating to a federally related mortgage loan , which shall include the borrower''s
      name, the borrower''s monthly income, the borrower''s social security number
      to obtain a credit report, the property address, an estimate of the value of
      the property, the mortgage loan amount sought, and any other information deemed
      necessary by the loan originator . An application may either be in writing or
      electronically submitted, including a written record of an oral application
      . Balloon payment has the same meaning as “balloon payment” under Regulation
      Z ( 12 CFR part 1026 ). Bureau means the Bureau of Consumer Financial Protection.
      Business day means a day on which the offices of the business entity are open
      to the public for carrying on substantially all of the entity ''s business functions.
      Changed circumstances means: (1) (i) Acts of God, war, disaster, or other emergency;
      (ii) Information particular to the borrower or transaction that was relied on
      in providing the GFE and that changes or is found to be inaccurate after the
      GFE has been provided. This may include information about the credit quality
      of the borrower, the amount of the loan, the estimated value of the property,
      or any other information that was used in providing the GFE; (iii) New information
      particular to the borrower or transaction that was not relied on in providing
      the GFE; or (iv) Other circumstances that are particular to the borrower or
      transaction, including boundary disputes, the need for flood insurance, or environmental
      problems. (2) Changed circumstances do not include: (i) The borrower''s name,
      the borrower''s monthly income, the property address, an estimate of the value
      of the property, the mortgage loan amount sought, and any information contained
      in any credit report obtained by the loan originator prior to providing the
      GFE, unless the information changes or is found to be inaccurate after the GFE
      has been provided; or (ii) Market price fluctuations by themselves. Dealer means,
      in the case of property improvement loans, a seller, contractor, or supplier
      of goods or services. In the case of manufactured home loans, “dealer” means
      one who engages in the business of manufactured home retail sales. Dealer loan
      or dealer consumer credit contract means, generally, any arrangement in which
      a dealer assists the borrower in obtaining a federally related mortgage loan
      from the funding lender and then assigns the dealer ''s legal interests to the
      funding lender and receives the net proceeds of the loan. The funding lender
      is the lender for the purposes of the disclosure requirements of this part.
      If a dealer is a “creditor” as defined under the definition of “federally related
      mortgage loan” in this part, the dealer is the lender for purposes of this part.
      Effective date of transfer is defined in section 6(i)(1) of RESPA ( 12 U.S.C.
      2605(i)(1) ). In the case of a home equity conversion mortgage or reverse mortgage
      as referenced in this section, the effective date of transfer is the transfer
      date agreed upon by the transferee servicer and the transferor servicer . Federally
      related mortgage loan means: (1) Any loan (other than temporary financing, such
      as a construction loan): (i) That is secured by a first or subordinate lien
      on residential real property, including a refinancing of any secured loan on
      residential real property, upon which there is either: (A) Located or, following
      settlement , will be constructed using proceeds of the loan, a structure or
      structures designed principally for occupancy of from one to four families (including
      individual units of condominiums and cooperatives and including any related
      interests, such as a share in the cooperative or right to occupancy of the unit);
      or (B) Located or, following settlement , will be placed using proceeds of the
      loan, a manufactured home ; and (ii) For which one of the following paragraphs
      applies. The loan: (A) Is made in whole or in part by any lender that is either
      regulated by or whose deposits or accounts are insured by any agency of the
      Federal Government; (B) Is made in whole or in part, or is insured, guaranteed,
      supplemented, or assisted in any way: (1) By the Secretary of the Department
      of Housing and Urban Development (HUD) or any other officer or agency of the
      Federal Government; or (2) Under or in connection with a housing or urban development
      program administered by the Secretary of HUD or a housing or related program
      administered by any other officer or agency of the Federal Government; (C) Is
      intended to be sold by the originating lender to the Federal National Mortgage
      Association, the Government National Mortgage Association, the Federal Home
      Loan Mortgage Corporation (or its successors), or a financial institution from
      which the loan is to be purchased by the Federal Home Loan Mortgage Corporation
      (or its successors); (D) Is made in whole or in part by a “creditor,” as defined
      in section 103(g) of the Consumer Credit Protection Act ( 15 U.S.C. 1602(g)
      ), that makes or invests in residential real estate loans aggregating more than
      $1,000,000 per year. For purposes of this definition, the term “creditor” does
      not include any agency or instrumentality of any State , and the term “residential
      real estate loan” means any loan secured by residential real property, including
      single-family and multifamily residential property; (E) Is originated either
      by a dealer or, if the obligation is to be assigned to any maker of mortgage
      loans specified in paragraphs (1)(ii)(A) through (D) of this definition, by
      a mortgage broker ; or (F) Is the subject of a home equity conversion mortgage,
      also frequently called a “reverse mortgage,” issued by any maker of mortgage
      loans specified in paragraphs (1)(ii)(A) through (D) of this definition. (2)
      Any installment sales contract, land contract, or contract for deed on otherwise
      qualifying residential property is a federally related mortgage loan if the
      contract is funded in whole or in part by proceeds of a loan made by any maker
      of mortgage loans specified in paragraphs (1)(ii) (A) through (D) of this definition.
      (3) If the residential real property securing a mortgage loan is not located
      in a State , the loan is not a federally related mortgage loan . Good faith
      estimate or GFE means an estimate of settlement charges a borrower is likely
      to incur, as a dollar amount, and related loan information, based upon common
      practice and experience in the locality of the mortgaged property , as provided
      on the form prescribed in § 1024.7 and prepared in accordance with the Instructions
      in appendix C to this part. HUD means the Department of Housing and Urban Development
      . HUD-1 or HUD-1A settlement statement (also HUD-1 or HUD-1A ) means the statement
      that is prescribed in this part for setting forth settlement charges in connection
      with either the purchase or the refinancing (or other subordinate lien transaction)
      of 1- to 4-family residential property. Lender means, generally, the secured
      creditor or creditors named in the debt obligation and document creating the
      lien. For loans originated by a mortgage broker that closes a federally related
      mortgage loan in its own name in a table funding transaction, the lender is
      the person to whom the obligation is initially assigned at or after settlement
      . A lender , in connection with dealer loans, is the lender to whom the loan
      is assigned, unless the dealer meets the definition of creditor as defined under
      “federally related mortgage loan” in this section. See also § 1024.5(b)(7) ,
      secondary market transactions. Loan originator means a lender or mortgage broker
      . Manufactured home is defined in HUD regulation 24 CFR 3280.2 . Mortgage broker
      means a person (other than an employee of a lender) that renders origination
      services and serves as an intermediary between a borrower and a lender in a
      transaction involving a federally related mortgage loan , including such a person
      that closes the loan in its own name in a table-funded transaction. Mortgaged
      property means the real property that is security for the federally related
      mortgage loan . Origination service means any service involved in the creation
      of a federally related mortgage loan , including but not limited to the taking
      of the loan application , loan processing, the underwriting and funding of the
      loan, and the processing and administrative services required to perform these
      functions. Person is defined in section 3(5) of RESPA ( 12 U.S.C. 2602(5) ).
      Prepayment penalty has the same meaning as “prepayment penalty” under Regulation
      Z ( 12 CFR part 1026 ). Public Guidance Documents means Federal Register documents
      adopted or published, that the Bureau may amend from time-to-time by publication
      in the Federal Register. These documents are also available from the Bureau
      . Requests for copies of Public Guidance Documents should be directed to the
      Assistant Director , Office of Regulations, Division of Research, Monitoring,
      and Regulations, Bureau of Consumer Financial Protection, 1700 G Street NW.,
      Washington, DC 20552. Refinancing means a transaction in which an existing obligation
      that was subject to a secured lien on residential real property is satisfied
      and replaced by a new obligation undertaken by the same borrower and with the
      same or a new lender . The following shall not be treated as a refinancing ,
      even when the existing obligation is satisfied and replaced by a new obligation
      with the same lender (this definition of “refinancing” as to transactions with
      the same lender is similar to Regulation Z , 12 CFR 1026.20 (a)): (1) A renewal
      of a single payment obligation with no change in the original terms; (2) A reduction
      in the annual percentage rate as computed under the Truth in Lending Act with
      a corresponding change in the payment schedule; (3) An agreement involving a
      court proceeding; (4) A workout agreement, in which a change in the payment
      schedule or change in collateral requirements is agreed to as a result of the
      consumer''s default or delinquency, unless the rate is increased or the new
      amount financed exceeds the unpaid balance plus earned finance charges and premiums
      for continuation of allowable insurance; and (5) The renewal of optional insurance
      purchased by the consumer that is added to an existing transaction, if disclosures
      relating to the initial purchase were provided. Regulation Z means the regulations
      issued by the Bureau ( 12 CFR part 1026 ) to implement the Federal Truth in
      Lending Act ( 15 U.S.C. 1601 et seq. ), and includes the Commentary on Regulation
      Z . Required use means a situation in which a person must use a particular provider
      of a settlement service in order to have access to some distinct service or
      property, and the person will pay for the settlement service of the particular
      provider or will pay a charge attributable, in whole or in part, to the settlement
      service . However, the offering of a package (or combination of settlement services
      ) or the offering of discounts or rebates to consumers for the purchase of multiple
      settlement services does not constitute a required use . Any package or discount
      must be optional to the purchaser. The discount must be a true discount below
      the prices that are otherwise generally available, and must not be made up by
      higher costs elsewhere in the settlement process. RESPA means the Real Estate
      Settlement Procedures Act of 1974 ( 12 U.S.C. 2601 et seq. ). Servicer means
      a person responsible for the servicing of a federally related mortgage loan
      (including the person who makes or holds such loan if such person also services
      the loan). The term does not include: (1) The Federal Deposit Insurance Corporation
      (FDIC), in connection with assets acquired, assigned, sold, or transferred pursuant
      to section 13(c) of the Federal Deposit Insurance Act or as receiver or conservator
      of an insured depository institution ; (2) The National Credit Union Administration
      (NCUA), in connection with assets acquired, assigned, sold, or transferred pursuant
      to section 208 of the Federal Credit Union Act or as conservator or liquidating
      agent of an insured credit union; and (3) The Federal National Mortgage Corporation
      (FNMA); the Federal Home Loan Mortgage Corporation (Freddie Mac); the FDIC ;
      HUD , including the Government National Mortgage Association (GNMA) and the
      Federal Housing Administration (FHA) (including cases in which a mortgage insured
      under the National Housing Act ( 12 U.S.C. 1701 et seq. ) is assigned to HUD);
      the NCUA; the Farm Service Agency ; and the Department of Veterans Affairs (VA),
      in any case in which the assignment, sale, or transfer of the servicing of the
      federally related mortgage loan is preceded by termination of the contract for
      servicing the loan for cause, commencement of proceedings for bankruptcy of
      the servicer , commencement of proceedings by the FDIC for conservatorship or
      receivership of the servicer (or an entity by which the servicer is owned or
      controlled), or commencement of proceedings by the NCUA for appointment of a
      conservator or liquidating agent of the servicer (or an entity by which the
      servicer is owned or controlled). Servicing means receiving any scheduled periodic
      payments from a borrower pursuant to the terms of any federally related mortgage
      loan , including amounts for escrow accounts under section 10 of RESPA ( 12
      U.S.C. 2609 ), and making the payments to the owner of the loan or other third
      parties of principal and interest and such other payments with respect to the
      amounts received from the borrower as may be required pursuant to the terms
      of the mortgage servicing loan documents or servicing contract. In the case
      of a home equity conversion mortgage or reverse mortgage as referenced in this
      section, servicing includes making payments to the borrower. Settlement means
      the process of executing legally binding documents regarding a lien on property
      that is subject to a federally related mortgage loan . This process may also
      be called “closing” or “escrow” in different jurisdictions. Settlement service
      means any service provided in connection with a prospective or actual settlement
      , including, but not limited to, any one or more of the following: (1) Origination
      of a federally related mortgage loan (including, but not limited to, the taking
      of loan applications, loan processing, and the underwriting and funding of such
      loans); (2) Rendering of services by a mortgage broker (including counseling,
      taking of applications, obtaining verifications and appraisals, and other loan
      processing and origination services, and communicating with the borrower and
      lender); (3) Provision of any services related to the origination, processing
      or funding of a federally related mortgage loan ; (4) Provision of title services,
      including title searches, title examinations, abstract preparation, insurability
      determinations, and the issuance of title commitments and title insurance policies;
      (5) Rendering of services by an attorney; (6) Preparation of documents, including
      notarization, delivery , and recordation; (7) Rendering of credit reports and
      appraisals; (8) Rendering of inspections, including inspections required by
      applicable law or any inspections required by the sales contract or mortgage
      documents prior to transfer of title; (9) Conducting of settlement by a settlement
      agent and any related services; (10) Provision of services involving mortgage
      insurance; (11) Provision of services involving hazard, flood, or other casualty
      insurance or homeowner''s warranties; (12) Provision of services involving mortgage
      life, disability, or similar insurance designed to pay a mortgage loan upon
      disability or death of a borrower, but only if such insurance is required by
      the lender as a condition of the loan; (13) Provision of services involving
      real property taxes or any other assessments or charges on the real property;
      (14) Rendering of services by a real estate agent or real estate broker; and
      (15) Provision of any other services for which a settlement service provider
      requires a borrower or seller to pay. Special information booklet means the
      booklet adopted pursuant to section 5 of RESPA ( 12 U.S.C. 2604 ) to help persons
      understand the nature and costs of settlement services. The Bureau publishes
      the form of the special information booklet in the Federal Register or by other
      public notice. The Bureau may issue or approve additional booklets or alternative
      booklets by publication of a Notice in the Federal Register. State means any
      state of the United States, the District of Columbia, the Commonwealth of Puerto
      Rico , and any territory or possession of the United States. Table funding means
      a settlement at which a loan is funded by a contemporaneous advance of loan
      funds and an assignment of the loan to the person advancing the funds. A table-funded
      transaction is not a secondary market transaction (see § 1024.5(b)(7) ). Third
      party means a settlement service provider other than a loan originator . Title
      company means any institution , or its duly authorized agent , that is qualified
      to issue title insurance. Title service means any service involved in the provision
      of title insurance (lender''s or owner''s policy), including but not limited
      to: Title examination and evaluation; preparation and issuance of title commitment;
      clearance of underwriting objections; preparation and issuance of a title insurance
      policy or policies; and the processing and administrative services required
      to perform these functions. The term also includes the service of conducting
      a settlement . Tolerance means the maximum amount by which the charge for a
      category or categories of settlement costs may exceed the amount of the estimate
      for such category or categories on a GFE. [ 76 FR 78981 , Dec. 20, 2011, as
      amended at 78 FR 10873 , Feb. 14, 2013; 88 FR 16542 , Mar. 20, 2023]'
  judgment: false
