Page:United States Statutes at Large Volume 109 Part 1.djvu/288

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109 STAT. 272 PUBLIC LAW 104-29—SEPT. 30, 1995 (d) PREPARATION OF LOAN DOCUMENTS. —Section 106(e)(2) of the Truth in Lending Act (15 U.S.C. 1605(e)(2)) is amended to read as follows: "(2) Fees for preparation of loan-related documents.". (e) FEES RELATING TO PEST INFESTATIONS, INSPECTIONS, AND HAZARDS.— Section 106(e)(5) of the Truth in Lending Act (15 U.S.C. 1605(e)(5)) is amended by inserting ", including fees related to any pest infestation or flood hazard inspections conducted prior to closing" before the period. 15 USC 1605 (f) ENSURING FINANCE CHARGES REFLECT COST OF CREDIT. — note. (1) REPORT. — (A) IN GENERAL.— Not later than 6 months after the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall submit to the Congress a report containing recommendations on any regulatory or statutory changes necessary— (i) to ensure that finance charges imposed in connection with consumer credit transactions more accurately reflect the cost of providing credit; and (ii) to address abusive refinancing practices engaged in for the purpose of avoiding rescission. (B) REPORT REQUIREMENTS. — In preparing the report under this paragraph, the Board shall— (i) consider the extent to which it is feasible to include in finance charges all charges payable directly or indirectly by the consumer to whom credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit (especially those charges excluded from finance charges under section 106 of the Truth in Lending Act as of the date of the enactment of this Act), excepting only those charges which are payable in a comparable cash transaction; and (ii) consult with and consider the views of affected industries and consumer groups. Federal Register, (2) REGULATIONS.—The Board of Governors of the Federal publication. Reserve System shall prescribe any appropriate regulation in order to effect any change included in the report under paragraph (1), and shall publish the regulation in the Federal Register before the end of the 1-year period beginning on the date of enactment of this Act. SEC. 3. TOLERANCES; BASIS OF DISCLOSURES. (a) TOLERANCES FOR ACCURACY.—Section 106 of the Truth in Lending Act (15 U.S.C. 1605) is amended by adding at the end the following new subsection: "(f) TOLERANCES FOR ACCURACY.— In connection with credit transactions not under an open end credit plan that are secured by real property or a dwelling, the disclosure of the finance charge and other disclosures affected by any finance charge— "(1) shall be treated as being accurate for purposes of this title if the amount disclosed as the finance charge— "(A) does not vary from the actual finance charge by more than $100; or "(B) is greater than the amount required to be disclosed under this title; and