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#1897286 - 02/14/14 03:14 PM points and fees calculation - help
Bluesfan57 Offline
100 Club
Joined: Feb 2011
Posts: 155
Peak 10 Breck, CO
we are finally closing our first QM loan. I just want to make sure that i am documenting this appropriately.

our loan amount $21,500 amount financed $21489 (Flood fee)

No origination fee
flood fee $11
Title work (affiliate) $153
Appraisal $425 (not affiliate - none retained by creditor)
Credit report $8.53 (non affiliate - none retained)
Recording fee $45
No Pre payment penalty
No LO compensation

So total loan amount is = amount financed - points and fees
$21325 Total loan amount = 21489 - 11 flood - 153 title

So $21325 is my total loan amount x .05 = $1066.25

and my $11 flood fee and $153 title work to an affiliate are well within tolerance.

does that make sense or did we way over think that?

As always, your help is greatly appreciated.

Thanks!
Last edited by Bluesfan57; 02/14/14 05:27 PM.
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#1897738 - 02/17/14 07:07 PM Re: points and fees calculation - help Bluesfan57
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
Loan Amount $21,500

Now you subtract non-APR fees that are included in the points and fees test. Since you are using an affiliated title company, you need to subtract this from your loan amount (Both agency and underwriting portion). QUESTION: Is the $153 the total title insurance premium OR just the Agency's portion?? Only the agency portion is calculated in the points and fees. I am going to ASSUME it is the total premium for this post. Is the $11 flood the flood certification fee OR the flood monitoring fee?

So, with the Non-APR fees subtracted, you get a total loan amount of $21,347 ($21,500 - title insurance premium)

Total Points and Fees Limit = $1,067.35 (5% of total loan amount)

Now add up your points and fees:
Flood Insurance ($11) + AGENCY portion of Title Insurance Premium Only) = Points and Fees

Is it less than $1,067.35 ? If so, you pass the points and fees test.

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#1897751 - 02/17/14 10:09 PM Re: points and fees calculation - help Bluesfan57
dblack Offline
Gold Star
Joined: Feb 2008
Posts: 263
AL
Flood fee isn't counted in the P&F test.
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#1897822 - 02/18/14 03:36 PM Re: points and fees calculation - help Bluesfan57
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
Flood Monitoring would be though; not the flood certification.

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#1897863 - 02/18/14 05:48 PM Re: points and fees calculation - help Bluesfan57
dblack Offline
Gold Star
Joined: Feb 2008
Posts: 263
AL
Not anymore.
That changed with this years changes to section 32.
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#1897907 - 02/18/14 07:07 PM Re: points and fees calculation - help Bluesfan57
Wanna be in Cabo Offline
New Poster
Joined: Aug 2013
Posts: 18
Texas
Will the spreadsheets in bankers tools be updated with the changes? Just wondering since I rely so much on these tools.
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#1897911 - 02/18/14 07:14 PM Re: points and fees calculation - help Bluesfan57
dblack Offline
Gold Star
Joined: Feb 2008
Posts: 263
AL
They have said that the spreadsheets will not be updated with the new changes.
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#1900246 - 02/26/14 07:12 PM Re: points and fees calculation - help Bluesfan57
Always questions Offline
Member
Joined: Jun 2011
Posts: 64
The flood fee monitoring portion is not a prepaid finance charge any longer? I'm confused by what you are saying here. I thought BluesFan57 was correct in taking the amount financed minus any other fees that would be considered in the P&F test and were financed to get to the TLA. So you are saying the life of loan flood is not a prepaid finance charge any longer and is not to be included in the amount financed calculation?

thanks

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