A lender charges a $600 document preparation fee on a high-cost mortgage. The actual cost to prepare documents is $150. How much of this fee counts toward HOEPA points and fees calculation?
Correct Answer
D) $600 - the entire fee amount
Under HOEPA, when a lender charges fees for services (like document preparation) that exceed the actual cost of the service, the entire fee amount is included in points and fees calculations, not just the excess portion.
Why This Is the Correct Answer
Under HOEPA, when a lender charges fees for services (like document preparation) that exceed the actual cost of the service, the entire fee amount is included in points and fees calculations, not just the excess portion.
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