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
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