A mortgage broker charges a borrower $3,000 in origination fees and receives $2,500 in yield spread premium from the lender on the same transaction. For HOEPA points and fees calculation purposes, what amount must be included?
Correct Answer
C) $5,500 total
Under HOEPA regulations, both compensation paid by the borrower to the broker ($3,000) and compensation paid by the lender to the broker ($2,500) must be included in points and fees calculations. The total $5,500 counts toward the HOEPA trigger threshold.
Why This Is the Correct Answer
Under HOEPA regulations, both compensation paid by the borrower to the broker ($3,000) and compensation paid by the lender to the broker ($2,500) must be included in points and fees calculations. The total $5,500 counts toward the HOEPA trigger threshold.
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