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HOEPA Points & Fees Test

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  • #4784
    timob1973
    Participant

    When calculating points and fees for QM/HOEPA test:

    (a) Do we include fees for title insurance that are paid to an affiliate of the bank?
    (b) Does the bank include the fee for document preparation that is retained by the bank?

    #4913
    rcooper
    Keymaster

    Incorrect post removed.

    #4917
    timob1973
    Participant

    We were beginning to wonder about your response Robin. Any ideas on our question above?

    #4944
    rcooper
    Keymaster

    I removed the wrong post but forgot to go back and answer your question…

    Both of these (items in 1026.4(c)(7)) are exempt from points and fees if:

    (A) The charge is reasonable;

    (B) The creditor receives no direct or indirect compensation in connection with the charge; and

    (C) The charge is not paid to an affiliate of the creditor.

    #4987
    Bankoftn
    Participant

    We got an opinion from an attorney on whether we have to include title insurance since they are an affiliate of the bank. He said that as long as our ownership interest is less than 25%, the title insurance company is not an affiliate under the rules and the charges would not be included in the Section 32 Points & Fees test.

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