Page:United States Statutes at Large Volume 108 Part 3.djvu/440

 108 STAT. 2192 PUBLIC LAW 103-325—SEPT. 23, 1994 "(2) ANNUAL PERCENTAGE RATE.—In addition to the disclosures required under paragraph (1), the creditor shall disclose— "(A) in the case of a credit transaction with a fixed rate of interest, the annual percentage rate and the amount of the regular monthly payment; or "(B) in the case of any other credit transaction, the annual percentage rate of the loan, the amount of the regular monthly payment, a statement that the interest rate and monthly payment may increase, and the amount of the maximum monthly payment, based on the maximum interest rate allowed pursuant to section 1204 of the Competitive Equality Banking Act of 1987. "(b) TIME OF DISCLOSURES. — "(1) IN GENERAL.— The disclosures required by this section . shall be given not less than 3 business days prior to consummation of the transaction. "(2) NEW DISCLOSURES REQUIRED. — "(A) ll* GENERAL. —After providing the disclosures required by this section, a creditor may not change the terms of the extension of credit if such changes make the disclosures inaccurate, unless new disclosures are provided that meet the requirements of this section. "(B) TELEPHONE DISCLOSURE. —A creditor may provide new disclosures pursuant to subparagraph (A) by telephone, if— "(i) the chahge is initiated by the consumer; and "(ii) at the consummation of the transaction under which the credit is extended— "(I) the creditor provides to the consumer the new disclosures, in writing; and "(II) the creditor and consumer certify in writing that the new disclosures were provided by telephone, by not later than 3 days prior to the date of consummation of the transaction. "(3) MODiFlCATlONS.The Board may, if it finds that such action is necessary to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of rights created under this subsection, to the extent and under the circumstances set forth in those regulations. " (c) No PREPAYMENT PENALTY.— "(1) IN GENERAL.— "(A) LIMITATION ON TERMS.—^A mortgage referred to in section 103(aa) may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal before the date on which the principal is due. "(B) CONSTRUCTION. —For purposes of this subsection, any method of computing a refund of unearned scheduled interest is a prepayment penalty if it is less favorable to the consumer than the actuarial method (as that term is defined in section 933(d) of the Housing and Community Development Act of 1992). "(2) EXCEPTION.— Notwithstanding paragraph (1), a mortgage referred to in section 103(aa) may contain a prepayment penalty (including terms calculating a refund by a method that is not prohibited under section 933(b) of the Housing

�