Include Cured Fee in Finance Charge Calculation?

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Question:

Should a cured fee (Underwriting Fee) be included in the finance charge calculation? The fee was not originally disclosed on the LE. Therefore, it was not included in the APR. The item was added to the CD and cured. Since it was cured it was not included in the APR/finance charges.

Answer:

A "cure" included on a closing disclosure to reimburse a borrower for a finance charge does not offset the finance charge. The finance charge will be included in the calculation of the APR, and the cure amount hasn't any impact, positive or negative on that calculation. It is not a "negative finance charge."