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APR Paid by Lender-APR Fee from Borrower?

Question: 
If an APR fee is paid at closing by the lender should it still count as a APR fee the borrower pays?
Answer: 

by Randy Carey:

No - it is not charged to the consumer.

1026.4(a) Definition. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.

Answer: 

by Richard Insley:

"Paying" means giving money to someone else. Lenders can't "pay" anything by taking money out of one pocket and putting it in another.

Answer: 

by Richard Insley;

One more point--to be a FC, a payment must be required by the contract between the parties--not just paid. The controlling factor is the obligation to make payment, not the payment itself. When a lender notifies the borrower that lender will absorb a fee, that amends any prior legal obligation between the parties.

First published on 02/17/2019

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