I understand the law under LMVSFA to allow us to charge a documentation fee. It does not mention an origination or loan fee.

I know one bank that charges only a documentation fee for loans under LMVSFA and one that charges both a loan and doc fee.

Which is correct?

SRR: the only fee allowable under La. MVSFA is a documentation fee.

See 6.969.18(7)

The maximum used to be $35.00 but that was lifted effective August 15, 2011.

Any insitution charging a loan origination fee is in violation.

I'd like in on this conversation...please.....I understood that also about the documentation fee.......Only one is allowed....With that said, my CEO states that we are allowed to charge a "loan fee" for any loan that we process....He even threw in the words of "Laser Pro Operators" are allowed to charge..a loan fee....which isn't a documentation fee according to him....

Is there a definition for a loan fee and a documentation fee and are they the same?

I think I would first go back to the CEO and very nicely ask for his help in locating where in State law he found that "we are allowed to charge a loan fee".

You might also consider contacting David Boneno with the LBA. He can help you validate what fees are acceptable.

Yes....I tried that....but in my case I have to prove...He just has to sit back and wait..Oh, he did tell me that the bank down the street does it and I should contact their Compliance person....I was sooooooo ticked off................I could have flipped his chair......


SRR shared an email from David with me....

My question now is this:

Loan Fee
Origination Fee

What is the difference....