PUBLIC LAW 104-29—SEPT. 30, 1995 109 STAT. 271 Public Law 104-29 104th Congress An Act To amend the Truth in Lending Act to clarify the intent of such Act and to Sept. 30, 1995 reduce burdensome regulatory requirements on creditors. [H.R. 2399] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. Truth in Lending Act Amendments SECTION 1. SHORT TITLE. of 1995. 1^ TTQO 1fini This Act may be cited as the "Truth in Lending Act Amend- _ ofg ments of 1995". SEC. 2. CERTAIN CHARGES. (a) THIRD PARTY FEES. —Section 106(a) of the Truth in Lending Act (15 U.S.C. 1605(a)) is amended by adding after the 2d sentence the following new sentence: 'The finance charge shall not include fees and amounts imposed by third party closing agents (including settlement agents, attorneys, and escrow and title companies) if the creditor does not require the imposition of the charges or the services provided and does not retain the charges.". (b) BORROWER-PAID MORTGAGE BROKER FEES.— (1) INCLUSION IN FINANCE CHARGE.—Section 106(a) of the Truth in Lending Act (15 U.S.C. 1605(a)) is amended by adding at the end the following new paragraph: "(6) Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender (for delivery to the broker) whether such fees are paid in cash or financed.". (2) EFFECTIVE DATE. —The amendment made by paragraph 15 USC 1605 (1) shall take effect on the earlier of— note. (A) 60 days after the date on which the Board of Governors of the Federal Reserve System issues final regulations under paragraph (3); or (B) the date that is 12 months after the date of the enactment of this Act. (3) REGULATIONS IMPLEMENTING BORROWER-PAID MORTGAGE 15 USC 1605 BROKER FEES. —The Board of Governors of the Federal Reserve note- System shall promulgate regulations implementing the amendment made by paragraph (1) by no later than 6 months after the date of the enactment of this Act. (c) TAXES ON SECURITY INSTRUMENTS OR EVIDENCES OF INDEBT- EDNESS.—Section 106(d) of the Truth in Lending Act (15 U.S.C. 1605(d)) is amended by adding at the end the following new paragraph: "(3) Any tax levied on security instruments or on documents evidencing indebtedness if the payment of such taxes is a precondition for recording the instrument securing the evidence of indebtedness.".