103(w), or is any subsequent refinancing
of such a transaction; and
‘‘(ii) does not provide any new consoli-
dation or new advance;
if the amount disclosed as the finance charge
does not vary from the actual finance charge by
more than an amount equal to one percent of
the total amount of credit extended.’’.
(b) BASIS OF DISCLOSURE FOR PER DIEM INTER-
EST.—Section 121(c) of the Truth in Lending Act (15
U.S.C. 1631(c)) is amended by adding at the end the fol-
lowing new sentence: ‘‘In the case of any consumer credit
transaction a portion of the interest on which is deter-
mined on a per diem basis and is to be collected upon
the consummation of such transaction, any disclosure with
respect to such portion of interest shall be deemed to be
accurate for purposes of this title if the disclosure is based
on information actually known to the creditor at the time
that the disclosure documents are being prepared for the
consummation of the transaction.’’.
SEC. 4. LIMITATION ON LIABILITY.
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.
‘‘(a) 
LIMITATIONS
ON
LIABILITY.—For 
any
consumer credit transaction subject to this title that is
consummated before the date of the enactment of the
Truth in Lending Act Amendments of 1995, a creditor
or any assignee of a creditor shall have no civil, adminis-
trative, or criminal liability under this title for, and a
consumer shall have no extended rescission rights under
section 125(f) with respect to—
‘‘(1) the creditor’s treatment, for disclosure
purposes, of—
‘‘(A) taxes described in section 106(d)(3);
‘‘(B) fees described in section 106(e)(2)
and (5);
‘‘(C) fees and amounts referred to in the
3rd sentence of section 106(a); or
‘‘(D) borrower-paid mortgage broker fees
referred to in section 106(a)(6);
‘‘(2) the form of written notice used by the
creditor to inform the obligor of the rights of the ob-
ligor under section 125 if the creditor provided the
obligor with a properly dated form of written notice
published and adopted by the Board or a comparable
written notice, and otherwise complied with all the
requirements of this section regarding notice; or
‘‘(3) any disclosure relating to the finance
charge imposed with respect to the transaction if the
amount or percentage actually disclosed—
‘‘(A) may be treated as accurate for pur-
poses of this title if the amount disclosed as the
finance charge does not vary from the actual fi-
nance charge by more than $200;
‘‘(B) may, under section 106(f)(2), be
treated as accurate for purposes of section 125;
or
‘‘(C) is greater than the amount or per-
centage required to be disclosed under this title.
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply
to—
‘‘(1) any individual action or counterclaim
brought under this title which was filed before June
1, 1995;
‘‘(2) any class action brought under this title
for which a final order certifying a class was entered
before January 1, 1995;
‘‘(3) the named individual plaintiffs in any class
action brought under this title which was filed before
June 1, 1995; or
‘‘(4) any consumer credit transaction with re-
spect to which a timely notice of rescission was sent
to the creditor before June 1, 1995.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 2 of the Truth in Lending Act is amended
by inserting after the item relating to section 138 the fol-
lowing new item:
‘‘139. Certain limitations on liability.’’.
SEC. 5. LIMITATION ON RESCISSION LIABILITY.
Section 125 of the Truth in Lending Act (15 U.S.C.
1635) is further amended by adding at the end the follow-
ing new subsection:
‘‘(h) LIMITATION ON RESCISSION.—An obligor shall
have no rescission rights arising solely from the form of
written notice used by the creditor to inform the obligor
of the rights of the obligor under this section, if the credi-
tor provided the obligor the appropriate form of written
notice published and adopted by the Board, or a com-
parable written notice of the rights of the obligor, that
was properly completed by the creditor, and otherwise
complied with all other requirements of this section re-
garding notice.’’.
SEC. 6. CALCULATION OF DAMAGES.
Section 130(a)(2)(A) of the Truth in Lending Act
(15 U.S.C. 1640(a)(2)(A)) is amended—
(1) by striking ‘‘or (ii)’’ and inserting ‘‘(ii)’’;
and
(2) by inserting before the semicolon at the end
the following: ‘‘, or (iii) in the case of an individual
action relating to a credit transaction not under an
open end credit plan that is secured by real property
or a dwelling, not less than $200 or greater than
$2,000’’.
SEC. 7. ASSIGNEE LIABILITY.
(a) VIOLATIONS APPARENT ON THE FACE OF TRANS-
ACTION DOCUMENTS.—Section 131 of the Truth in Lend-
ing Act (15 U.S.C. 1641) is amended by adding at the
end the following new subsection:
‘‘(e) LIABILITY OF ASSIGNEE FOR CONSUMER CRED-
IT TRANSACTIONS SECURED BY REAL PROPERTY.—
‘‘(1) IN GENERAL.—Except as otherwise specifi-
cally provided in this title, any civil action against
a creditor for a violation of this title, and any pro-
ceeding under section 108 against a creditor, with
respect to a consumer credit transaction secured by
real property may be maintained against any as-
signee of such creditor only if—
‘‘(A) the violation for which such action or
proceeding is brought is apparent on the face of
the disclosure statement provided in connection
with such transaction pursuant to this title; and
‘‘(B) the assignment to the assignee was
voluntary.
‘‘(2) VIOLATION APPARENT ON THE FACE OF
THE DISCLOSURE DESCRIBED.—For the purpose of
this section, a violation is apparent on the face of
the disclosure statement if—
‘‘(A) the disclosure can be determined to
be incomplete or inaccurate by a comparison of
the disclosure statement, any itemization of the
amount financed, the note, or any other disclo-
sure of disbursement; or
‘‘(B) the disclosure statement does not use
the terms or format required to be used by this
title.’’.
(b) SERVICER NOT TREATED AS ASSIGNEE.—Section
131 of the Truth in Lending Act (15 U.S.C. 1641) is fur-
ther amended by adding after subsection (e) (as added by
subsection (a) of this section) the following new sub-
section:
‘‘(f) TREATMENT OF SERVICER.—
‘‘(1) IN GENERAL.—A servicer of a consumer
obligation arising from a consumer credit trans-
action shall not be treated as an assignee of such ob-
SEC. 8. RESCISSION RIGHTS IN FORECLOSURE.
Section 125 of the Truth in Lending Act (15 U.S.C.
1635) is amended by inserting after subsection (h) (as
added by section 5 of this Act) the following new sub-
section:
‘‘(i) RESCISSION RIGHTS IN FORECLOSURE.—
‘‘(1) IN
GENERAL.—Notwithstanding section
139, and subject to the time period provided in sub-
section (f), in addition to any other right of rescis-
sion available under this section for a transaction,
after the initiation of any judicial or nonjudicial
foreclosure process on the primary dwelling of an ob-
ligor securing an extension of credit, the obligor
shall have a right to rescind the transaction equiva-
lent to other rescission rights provided by this sec-
tion, if—
‘‘(A) a mortgage broker fee is not included
in the finance charge in accordance with the
laws and regulations in effect at the time the
consumer credit transaction was consummated;
or
‘‘(B) the form of notice of rescission for
the transaction is not the appropriate form of
written notice published and adopted by the
Board or a comparable written notice, and oth-
erwise complied with all the requirements of
this section regarding notice.
‘‘(2) TOLERANCE FOR DISCLOSURES.—Notwith-
standing section 106(f), and subject to the time pe-
riod provided in subsection (f), for the purposes of
exercising any rescission rights after the initiation of
any judicial or nonjudicial foreclosure process on the
principal dwelling of the obligor securing an exten-
sion of credit, the disclosure of the finance charge
and other disclosures affected by any finance charge
shall be treated as being accurate for purposes of
this section if the amount disclosed as the finance
charge does not vary from the actual finance charge
by more than $35 or is greater than the amount re-
quired to be disclosed under this title.
‘‘(3) RIGHT
OF
RECOUPMENT
UNDER
STATE
LAW.—Nothing in this subsection affects a consum-
er’s right of rescission in recoupment under State
law.
‘‘(4) APPLICABILITY.—This subsection shall
apply to all consumer credit transactions in existence
or consummated on or after the date of the enact-
ment of the Truth in Lending Act Amendments of
1995.’’.
Æ