O...K...I... Will..try...to...help. (just kidding). Technically, there is a difference between financed fees and fees paid in cash (this is very technical). In fact, I didn't even catch this until fellow BOL poster, David Chaney called me. He noticed that our worksheet doesn't break these out.
Regulation Z Commentary 226.32(a)(1)(ii) states "Total Loan Amount. For purposes of the "points and fees" test, the total loan amount is calculated by taking the amount financed, as determined according to section 226.18(b), and deducting any cost
listed in section 226.32(b)(iii) and section 226.32(b)(1)(iv) that is both included as points and fees under section
226.32(b)(1) and financed by the creditor
Our spreadsheet deducts all fees, whether paid in cash or financed, from the principal loan amount or the face amount of the loan, instead of deducting 226.4(c)(7) items and credit insurance fees that are paid to and financed by the bank from the amount financed. [whew! that may have a bit technical].
What this does is over distort the percent as the numerator is smaller than it needs to be. For those of you that have downloaded the HOEPA Spreadsheet
, I will try to work on this, but I may just leave it with a slightly conservative answer.
So, back to the question: The HOEPA "total loan amount" is really the principal amount of the loan less any financed HOEPA fees (finance charges + non-finance charges the bank or an affiliate keeps).