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#1656287 - 01/26/12 03:10 PM PLEASE!Waived Origination Charge in APR?
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
Sorry if this has already been addressed, but I need an answer ASAP......We waived an origination charge (shown on GFE as credit). If the fee had not been waived we would have included in APR calculation. Since it was waived we didn't include in APR. Secondary Market review is stating it should have been included and is instructing us to refund a fee to the borrower that was never paid by the borrower.

Should the waived fee have been included in the APR?
Last edited by On the Edge; 01/26/12 03:47 PM.
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RESPA
#1656697 - 01/26/12 08:33 PM Re: PLEASE!Waived Origination Charge in APR? OnTheEdge
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If you waive your own fee there is no need to disclose it because it would not be a settlement charge being paid, unless you are going to pay yourself the fee for some accounting reason.

Tell your investor to review the Commentary to 226.4.

Costs of doing business. Charges absorbed by the creditor as a cost of doing business are not finance charges, even though the creditor may take such costs into consideration in determining the interest rate to be charged or the cash price of the property or service sold. . . . .
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#1656982 - 01/27/12 02:35 PM Re: PLEASE!Waived Origination Charge in APR? Dan Persfull
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
Thanks Dan!
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