A New York borrower in 2026 pays 3 bona fide discount points on a home loan. How many bona fide discount points may be excluded from the New York high-cost points-and-fees calculation?
Correct Answer
C) Up to 2 of them may be excluded from points and fees
Up to and including two bona fide loan discount points payable by the borrower are excluded, but only if the rate from which the loan rate is discounted does not exceed by more than one percentage point the comparable Treasury yield. Other choices: the exclusion is capped at two; some exclusion is available; and the cap is 2 rather than 4. Source: N.Y. Banking Law § 6-l(1)(g)(ii)(1)
Why This Is the Correct Answer
Up to and including two bona fide loan discount points payable by the borrower are excluded, but only if the rate from which the loan rate is discounted does not exceed by more than one percentage point the comparable Treasury yield. Other choices: the exclusion is capped at two; some exclusion is available; and the cap is 2 rather than 4. Source: N.Y. Banking Law § 6-l(1)(g)(ii)(1)
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