We currently have a loan where the origination fee was reflected on the GFE and HUD. When we added this fee (which will be paid in cash by the borrower) to our disbursement page in laser pro it made out APR go up. Why would this be happening? Has anyone else experienced this?

Your origination fee is a PPFC which would increase the APR, so I'm not quite sure where you are going with this...

Disclaimer - not a Laser Pro user, however most fees require input to point to whether the fee is a PPFC or not.

It's been a while since I've worked with LaserPro and it might have changed, but you might be updating the settlement statement based on the disbursement section....making it counted twice for APR purposes. I don't think you want to include it on the disbursement page. Instead, list it on the settlement statement as funds collected from borrower.

If that doesn't work then hopefully someone that still has access to LaserPro will chime in.

A borrower-paid origination fee is always a FC, but it should never be counted twice when preparing your TIL. Regardless of whether the fee is paid in cash prior to closing or deducted from the borrower's funds at settlement, it becomes a Prepaid FC. If it were to be paid after settlement, it would still be a FC--just not prepaid.

I will get with our loan processing department to see if we have counted it twice by mistake. Thank you so much for the suggestion.