Which of the following fees would NOT be included in the points and fees calculation for HOEPA purposes on a $150,000 loan?
Correct Answer
B) A $350 appraisal fee paid to an independent third-party appraiser
Under HOEPA, bona fide third-party charges for services actually performed (like appraisal fees paid to independent appraisers) are excluded from points and fees calculations. Application fees retained by lenders, excessive credit report fees, and origination fees are all included.
Why This Is the Correct Answer
Under HOEPA, bona fide third-party charges for services actually performed (like appraisal fees paid to independent appraisers) are excluded from points and fees calculations. Application fees retained by lenders, excessive credit report fees, and origination fees are all included.
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A mortgage loan originator notices that a borrower's income documentation shows round numbers with no cents (e.g., $5,000.00, $3,000.00) for multiple months of bank statements, and the borrower becomes evasive when asked about the source of these deposits. What is the MLO's primary obligation under BSA/AML requirements?
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A mortgage broker charges a borrower a $500 processing fee and receives a $2,000 yield spread premium from the lender. For TILA disclosure purposes, what amount should be included in the finance charge?