PUBLIC LAW 103-325—SEPT. 23, 1994 108 STAT. 2191 "(i) less that 8 percentage points; or "(ii) greater than 12 percentage points. "(C) In determining whether to increase or decrease the number of percentage points referred to in subparagraph (A), the Board shall consult with representatives of consumers, including lowincome consumers, and lenders. "(3) The amount specified in paragraph (l)(B)(ii) shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index, as reported on June 1 of the year preceding such adjustment. "(4) For purposes of paragraph (1)(B), points and fees shall include— "(A) all items included in the finance charge, except interest or the time-price differential; "(B) all compensation paid to mortgage brokers; "(C) each of the charges listed in section 106(e) (except an escrow for future payment of taxes), unless— "(i) the charge is reasonable; "(ii) the creditor receives no direct or indirect compensation; and "(iii) the charge is paid to a third party unaffiliated with the creditor; and "(D) such other charges as the Board determines to be appropriate. "(5) This subsection shall not be construed to limit the rate of interest or the finance charge that a person may charge a consumer for any extension of credit.". (b) MATERIAL DISCLOSURES.— Section 103(u) of the Truth in Lending Act (15 U.S.C. 1602(u)) is amended— (1) by striking "and the due dates" and inserting "the due dates"; and (2) by inserting before the period ", and the disclosures required by section 129(a)". (c) DEFINITION OF CREDITOR CLARIFIED.— Section 103(f) of the Truth in Lending Act (15 U.S.C. 1602(f)) is amended by adding at the end the following: "Any person who originates 2 or more mortgages referred to in subsection (aa) in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor for purposes of this title.". (d) DISCLOSURES REQUIRED AND CERTAIN TERMS PROHIBITED.— The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after section 128 the following new section: "SEC. 129. REQUIREMENTS FOR CERTAIN MORTGAGES. 15 USC 1639. "(a) DISCLOSURES.— "(1) SPECIFIC DISCLOSURES. — In addition to other disclosures required under this title, for each mortgage referred to in section 103(aa), the creditor shall provide the following disclosures in conspicuous type size: "(A) Tou are not required to complete this agreement merely because you have received these disclosures or have signed a loan application.'. "(B) 'If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obligations under the loan.'.