124 STAT. 2159 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(ii) may not result in the number of percentage points referred to in paragraph (1)(A)(i)(II) being less than 8 percentage points or greater than 12 percentage points.’’. (c) POINTS AND FEES DEFINED.— (1) IN GENERAL.—Section 103(aa)(4) of the Truth in Lending Act (15 U.S.C. 1602(aa)(4)) is amended— (A) by striking subparagraph (B) and inserting the following: ‘‘(B) all compensation paid directly or indirectly by a consumer or creditor to a mortgage originator from any source, including a mortgage originator that is also the creditor in a table-funded transaction;’’; (B) by redesignating subparagraph (D) as subpara- graph (G); and (C) by inserting after subparagraph (C) the following new subparagraphs: ‘‘(D) premiums or other charges payable at or before closing for any credit life, credit disability, credit unemploy- ment, or credit property insurance, or any other accident, loss-of-income, life or health insurance, or any payments directly or indirectly for any debt cancellation or suspension agreement or contract, except that insurance premiums or debt cancellation or suspension fees calculated and paid in full on a monthly basis shall not be considered financed by the creditor; ‘‘(E) the maximum prepayment fees and penalties which may be charged or collected under the terms of the credit transaction; ‘‘(F) all prepayment fees or penalties that are incurred by the consumer if the loan refinances a previous loan made or currently held by the same creditor or an affiliate of the creditor; and’’. (2) CALCULATION OF POINTS AND FEES FOR OPEN-END CON- SUMER CREDIT PLANS.—Section 103(aa) of the Truth in Lending Act (15 U.S.C. 1602(aa)) is amended— (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following new paragraph: ‘‘(5) CALCULATION OF POINTS AND FEES FOR OPEN-END CON- SUMER CREDIT PLANS.—In the case of open-end consumer credit plans, points and fees shall be calculated, for purposes of this section and section 129, by adding the total points and fees known at or before closing, including the maximum prepayment penalties which may be charged or collected under the terms of the credit transaction, plus the minimum additional fees the consumer would be required to pay to draw down an amount equal to the total credit line.’’. (d) BONA FIDE DISCOUNT LOAN DISCOUNT POINTS.—Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended by inserting after subsection (cc) (as added by section 1401) the fol- lowing new subsection: ‘‘(dd) BONA FIDE DISCOUNT POINTS AND PREPAYMENT PEN- ALTIES.—For the purposes of determining the amount of points and fees for purposes of subsection (aa), either the amounts
