A mortgage broker receives $3,000 in compensation from the lender and charges the borrower an additional $2,000 origination fee. For HOEPA points and fees calculation purposes, what amount should be included?
Correct Answer
C) $5,000 total
Under HOEPA, both the compensation paid by the lender to the broker ($3,000) and the origination fee charged to the borrower ($2,000) must be included in the points and fees calculation, totaling $5,000.
Why This Is the Correct Answer
Under HOEPA, both the compensation paid by the lender to the broker ($3,000) and the origination fee charged to the borrower ($2,000) must be included in the points and fees calculation, totaling $5,000.
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