Definition of points and fees

(a)

Amendment to section 103 of TILA

Section 103(bb)(4) of the Truth in Lending Act (15 U.S.C. 1602(bb)(4)) is amended— (1)by striking

paragraph (1)(B)

and inserting

paragraph (1)(A) and section 129C

; (2)in subparagraph (C)— (A)by inserting

and insurance

after

taxes

; (B)in clause (ii), by inserting

, except as retained by a creditor or its affiliate as a result of their participation in an affiliated business arrangement (as defined in section 2(7) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(7))

after

compensation

; and (C)by striking clause (iii) and inserting the following:

(iii)the charge is— (I)a bona fide third-party charge not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator; or (II)a charge set forth in section 106(e)(1);

; and

(3)in subparagraph (D)— (A)by striking

accident,

; and (B)by striking

or any payments

and inserting

and any payments

. (b)

Amendment to section 129C of TILA

Section 129C of the Truth in Lending Act (15 U.S.C. 1639c) is amended— (1)in subsection (a)(5)(C), by striking

103

and all that follows through

or mortgage originator

and inserting

103(bb)(4)

; and (2)in subsection (b)(2)(C)(i), by striking

103

and all that follows through

or mortgage originator)

and inserting

103(bb)(4)

Rulemaking

Not later than the end of the 90-day period beginning on the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue final regulations to carry out the amendments made by this Act, and such regulations shall be effective upon issuance.