I am being questioned by our loan processing staff about a fee, its credit and how it plays into HOEPA. I am hoping that you can give me some guidance...
There is a .25% delivery fee that is charged on our secondary market loans. This fee is a finance charge which reflects in the APR. Sometimes there is a .25% credit that will offset this delivery fee. When this is the case, we still show the delivery fee which reflects in the APR but the credit also shows which will affect the fees that the customer pays. So the question is...should we be showing this .25% delivery fee in the "fees test" portion of HOEPA regardless if we have the credit. Or should we show the delivery fee as $0 on the fees test if the credit applies? It would seem that the fee will still reflect in the "rate test" part of HOEPA as the we still disclose the fee even if there is a credit.