Section 1026.4(c)(7) of Regulation Z states that filing fees may be excluded from the finance charge in transaction secured by real property or in a residential mortgage transaction, if the fees are bona fide and reasonable in amount.
Section 1026.4(d)(7) states that VSI premiums may be excluded from the finance charge if:
i. The insurer waives any right of subrogation.
ii. The other requirements of § 226.4(d)(2) are met. This includes, of course, giving the consumer the option of obtaining the insurance from a person of the consumer’s choice. The creditor need not ascertain whether the consumer is able to purchase the insurance from someone else.
I think I’m now confused even more. 99% of our installment loans disclose both the VSI and filing fees on the TIL (generally because they are part of the amount financed). On occasion these fees are paid in cash and have not been included in the TIL calculation, nor in the itemization of amount financed.
Are they now prepaid finance charges? Sorry for the elementary questions, but I’m fairly new at this.