Document Prep Fee in APR?
by Dan Persfull, BOL Guru Guru BIOS
Question: I am new to compliance and have a question regarding APR. You replied to my co-worker that the document preparation fee is not included in the APR, but I need to know who this applies to, the attorney or the lender/broker. In other words, when the attorney prepares the documents, is it included in the APR; when I (Lender), prepare the documents is it included? Please make your answer simple.
Answer: The documentation fee in relation to a loan secured by real estate, if reasonable and bona fide, is exempt whether charged by the financial institution, title company or attorney.
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