Documentation Fees Affect on APR

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Question:

What fees are included in the APR? We are currently charging a Documentaion fee of $100.00. Should this fee affect the APR if it is being financed?

Answer:

The OCC has a good Finance Charge table on PDF page 98, book page 95 in their TiLA manual. Use this as your resource.

That manual is good and so is reviewing Section 226.4 in Reg. Z. The reason for the fee and not a generic name classification is needed as you and I may have the same fee by name, but with different purposes behind it. And that is what determines what is a FC and what is not.

First published on BankersOnline.com 7/04/05