Can someone explain the section in CT law concerning the 5% max points on a loan? In one section it looks like the Sec. 32 fee limits exist but then another looks like its 5%. Our scenario is that our total fees are 5.6%. We can't sell because the investor states that it's over the state limit. Any assistance would be appreciated...

There is a 5% Closing Cost Cap which replicates the Federal HOEPA but discludes a couple fees I beleive the per diem interest being one of them. I would double check with Jeff Hubbell of the Connecticut Banking Department for the actual fees involved to ensure that you are calculating the right fees. Also be careful of the 24 month 5% closing costs cap that restricts a lender from charging more then 5% total fees on all combined transactions for the same consumer in any given 24 months. Banks have a harder time with this then Brokers since the Broker can just place the loan with another lender to avoid the restriction. A bank would have to obtain the costs of the last transaction that was less then 24 months and waive any fees that made the total costs to the consumer that exceeds the 5% limit in the 24 month period (refinances etc).