Which of the following fees would NOT be included in the finance charge calculation under TILA?
Correct Answer
C) Title insurance premium required by the lender
Under TILA/Regulation Z Section 1026.4, title insurance premiums are generally excluded from the finance charge because they are typically third-party fees not imposed by the creditor. Loan origination fees, broker fees, and discount points are included in the finance charge as they are costs of obtaining credit.
Why This Is the Correct Answer
Under TILA/Regulation Z Section 1026.4, title insurance premiums are generally excluded from the finance charge because they are typically third-party fees not imposed by the creditor. Loan origination fees, broker fees, and discount points are included in the finance charge as they are costs of obtaining credit.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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