the definitions other than Required use in § 3500.2, § 3500.7, §§ 3500.8(a) and(c), § 3500.9, and Appendices A and C, are applicable commencing January 1, 2010.

[73 FR 68239, Nov. 17, 2008; 74 FR 2370, Jan. 15, 2009, as amended at 74 FR 10174, Mar. 10, 2009; 74 FR 22826, May 15, 2009]

# § 3500.6 Special information booklet at time of loan application.

# (a) Lender to provide special information booklet.

Subject to the exceptions set forth in this paragraph, the lender shall provide a copy of the special information booklet to a person from whom the lender receives, or for whom the lender prepares, a written application for a federally related mortgage loan. When two or more persons apply together for a loan, the lender is in compliance if the lender provides a copy of the booklet to one of the persons applying.

# (1) The lender shall provide the special information booklet

by delivering it or placing it in the mail to the applicant not later than three business days (as that term is defined in § 3500.2) after the application is received or prepared. However, if the lender denies the borrower's application for credit before the end of the three-business-day period, then the lender need not provide the booklet to the borrower. If a borrower uses a mortgage broker, the mortgage broker shall distribute the special information booklet and the lender need not do so. The intent of this provision is that the applicant receive the special information booklet at the earliest possible date.

involving an open-ended credit plan, as defined in § 226.2(a)(20) of Regulation Z (12 CFR), a lender or mortgage broker that provides the borrower with a copy of the brochure entitled “When Your Home is On the Line: What You Should Know About Home Equity Lines of Credit”, or any successor brochure issued by the Board of Governors of the Federal Reserve System, is deemed to be in compliance with this section.

# (3) In the categories of transactions set forth at the end of this paragraph

the lender or mortgage broker does not have to provide the booklet to the borrower. Under the authority of section 19(a) of RESPA (12 U.S.C. 2617(a)),
the Secretary may issue a revised or separate special information booklet that deals with these transactions, or the Secretary may chose to endorse the forms or booklets of other Federal agencies. In such an event, the requirements for delivery by lenders and the availability of the booklet or
alternate materials for these transactions will be set forth in a Notice in the Federal Register. This paragraph shall apply to the following transactions:

# (i) Refinancing transactions;

# (ii) Closed-end loans

: as defined in 12 CFR 226.2(a)(10) of Regulation Z, when the lender takes a subordinate lien;

# (iii) Reverse mortgages; and

whose purpose is not the purchase of a 1- to 4-family residential property.

# (b) Revision.

The Secretary may from time to time revise the special information booklet by publishing a notice in the Federal Register.

Format Testing

# § 3500.1 Designation and applicability.

# (a) Designation .

# (b) Applicability .

# (1) Sections 3500.8(b), 3500.17, 3500.21, 3500.22 and 3500.23, and Appendices E and MS-1

# (2) Section 203.27,