Skip to content

Mortgage Loans Fees & the APR

Question: 
What fees and or charges affect the APR on a closed end mortgage loan (fixed rate)?
Answer: 

Answer by Jim Bedsole: Any fee or charge that is a finance charge will affect the APR on a closed end mortgage loan (fixed rate). For clarity on which fees or charges are a finance charge, study Reg Z section 226.4and the applicable staff commentary. These documents give a number of specific examples of fees that are and are not finance charges.

Answer: 

Answer by Richard Insley: Don't pay too much attention to the names of your fees. Look instead at the nature of each fee, the ultimate recipient, and and any upcharge. Apply the duck rule--if it looks like a FC, it's a FC, unless you can prove otherwise.

First published on BankersOnline.com 10/05/09

First published on 10/05/2009

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics