Truth in Lending — 1996-05-24 [96-12685]

The Board is publishing for comment proposed revisions to Regulation Z (Truth in Lending). The revisions would implement the Truth in Lending Act Amendments of 1995 (1995 Amendments), which establish new creditor-liability rules for closed-end loans secured by real property or dwellings consummated on or after September 30, 1995. The 1995 Amendments create several tolerances for accuracy in disclosing the amount of the finance charge, and creditors have no civil or administrative liability if the finance charge or affected disclosures are within the applicable tolerances. The amendments also clarify how lenders must disclose certain fees connected with mortgage loans. In addition, the Board is proposing a new rule regarding the treatment of fees charged in connection with debt cancellation agreements, which would be similar to the existing rule regarding credit insurance premiums, and provide for more uniform treatment of these fees.