I know of one lender who isn't showing the lender credit on the LE. Their theory is: "If a fee changes and the credit actually should be less to get to the 3% mark, I have to swallow the loss, and who is going to complain that they got a discount?"
Last edited by -Z-; 02/22/16 05:55 PM.
On the other hand, there's not much that can change. I think the risks are low in putting it in the LE.
On disadvantage is if your applicant uses the LE to shop around. Your fees will appear higher than they eventually will be. But hardly any applicants acually use an LE to shop.
It is too bad it can't be shown on the LE that, regardless of fees shown or what the total fees are on the CD, the total fees the customer will pay will not exceed X dollars (being 3% of the loan amount).
Only two things that money can't buy, that's true love & homegrown tomatoes