A North Carolina lender charges discount points from a 2026 affiliated-seller incentive. What written policies concerning discount points must the lender maintain?
Correct Answer
A) It must hold written policies and procedures on charging points
The mortgage lender shall maintain written policies and procedures related to the charging of discount points, including the method of informing borrowers of the benefits and costs of discount points and a commercially reasonable method for determining the amount by which the rate will be reduced for the payment of a point. Other choices: the rule reaches firm-level policy as well as the file; and no volume or request condition appears. Source: 04 NCAC 03M .0602(c)
Why This Is the Correct Answer
The mortgage lender shall maintain written policies and procedures related to the charging of discount points, including the method of informing borrowers of the benefits and costs of discount points and a commercially reasonable method for determining the amount by which the rate will be reduced for the payment of a point. Other choices: the rule reaches firm-level policy as well as the file; and no volume or request condition appears. Source: 04 NCAC 03M .0602(c)
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