I'm having that kind of a Monday so please forgive this brain **** question...

If a credit will pay for a PPFC item, do we no longer count it as a PPFC when calculating the TIL because the borrower is not paying it?

Does it matter where the credit is coming from, ie: bank, seller or grant?

I've searched and found nothing specific to the TIL on this so your quick help is appreciated. If you have a reference I can throw into the discussion, so much the better.

THANK YOU!!!

I say No to bank paid...I think if the seller pays it, it has to be itemized out and can't be a lump credit.

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. However, if the creditor separately imposes a charge on the consumer to cover certain costs, the charge is a finance charge if it otherwise meets the definition. For example:

Joker, I fully agree with your response. I recall reading somewhere that a seller credit must itemize the expenses to which the credit is to be applied in order for that expense to be excluded from the PPFC, but I can't remember where. I have this same issue pending right now. Can anyone point me to where I can find this?

Does this same principle, having to specify which fees are being absorbed, apply to a lender credit as well?

Thank you.

It's been discussed on here several times...perhaps search "ppfc" or "seller + credit" in the lending and RESPA forum?

Apparently another question du jour.
I found this in today's Lending forum.