GENERAL EXEMPTION AUTHORITY FOR LOANS.

SEC. 2102. GENERAL EXEMPTION AUTHORITY FOR LOANS. (a) Regulatory Flexibility.— Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended— (1) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and (2) by inserting after paragraph (4) the following new paragraph: 110 STAT. 3009–399 “(5) Transactions for which the Board, by rule, determines that coverage under this title is not necessary to carry out the purposes of this title.”. (b) Exemption Authority.— Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is amended by adding at the end the following new subsection: “(f) Exemption Authority.— “(1) In general.— The Board may exempt, by regulation, from all or part of this title any class of transactions, other than transactions involving any mortgage described in section 103(aa), for which, in the determination of the Board, coverage under all or part of this title does not provide a meaningful benefit to consumers in the form of useful information or protection. “(2) Factors for consideration.— In determining which classes of transactions to exempt in whole or in part under paragraph (1), the Board shall consider the following factors and publish its rationale at the time a proposed exemption is published for comment: “(A) The amount of the loan and whether the disclosures, right of rescission, and other provisions provide a benefit to the consumers who are parties to such transactions, as determined by the Board. “(B) The extent to which the requirements of this title complicate, hinder, or make more expensive the credit process for the class of transactions. “(C) The status of the borrower, including— “(i) any related financial arrangements of the borrower, as determined by the Board; “(ii) the financial sophistication of the borrower relative to the type of transaction; and “(iii) the importance to the borrower of the credit, related supporting property, and coverage under this title, as determined by the Board; “(D) whether the loan is secured by the principal residence of the consumer; and “(E) whether the goal of consumer protection would be undermined by such an exemption.”.