15 U.S.C. § 1605: Determination of finance charge

Interest, time price differential, and any amount payable under a point, discount, or other system or additional charges. Service or carrying charge. Loan fee, finder’s fee, or similar charge. Fee for an investigation or credit report. Premium or other charge for any guarantee or insurance protecting the creditor against the obligor’s default or other credit loss. 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. the coverage of the debtor by the insurance is not a factor in the approval by the creditor of the extension of credit, and this fact is clearly disclosed in writing to the person applying for or obtaining the extension of credit; and in order to obtain the insurance in connection with the extension of credit, the person to whom the credit is extended must give specific affirmative written indication of his desire to do so after written disclosure to him of the cost thereof. Charges or premiums for insurance, written in connection with any consumer credit transaction, against loss of or damage to property or against liability arising out of the ownership or use of property, shall be included in the finance charge unless a clear and specific statement in writing is furnished by the creditor to the person to whom the credit is extended, setting forth the cost of the insurance if obtained from or through the creditor, and stating that the person to whom the credit is extended may choose the person through which the insurance is to be obtained. Fees and charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to the credit transaction. The premium payable for any insurance in lieu of perfecting any security interest otherwise required by the creditor in connection with the transaction, if the premium does not exceed the fees and charges described in paragraph (1) which would otherwise be payable. 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. Fees or premiums for title examination, title insurance, or similar purposes. Fees for preparation of loan-related documents. Escrows for future payments of taxes and insurance. Fees for notarizing deeds and other documents. Appraisal fees, including fees related to any pest infestation or flood hazard inspections conducted prior to closing. Credit reports. does not vary from the actual finance charge by more than $100; or is greater than the amount required to be disclosed under this subchapter; and except as provided in subparagraph (B), the amount disclosed as the finance charge does not vary from the actual finance charge by more than an amount equal to one-half of one percent of the total amount of credit extended; or is a refinancing of the principal balance then due and any accrued and unpaid finance charges of a residential mortgage transaction as defined in section 1602(w) 1 of this title, or is any subsequent refinancing of such a transaction; and does not provide any new consolidation or new advance; 60 days after the date on which the Board of Governors of the Federal Reserve System issues final regulations under paragraph (3) [set out below]; or the date that is 12 months after the date of the enactment of this Act [ Sept. 30, 1995 ].” to ensure that finance charges imposed in connection with consumer credit transactions more accurately reflect the cost of providing credit; and to address abusive refinancing practices engaged in for the purpose of avoiding rescission. 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 [ 15 U.S.C. 1605 ] as of the date of the enactment of this Act), excepting only those charges which are payable in a comparable cash transaction; and consult with and consider the views of affected industries and consumer groups. The Board of Governors of the Federal 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.”