Put Lender Credit in APR?

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Question:

Our bank will occasionally give a lender credit to offset Origination Fees/Discount Points. In this case, would that lender credit be calculated into the APR, thus ultimately lowering the APR?

Answer:

Yes, disclosures must reflect any pre-closing amendment in the agreement between the borrower and lender. When the lender reduces the interest rate, fees, or any other component of the FC, the APR is reduced.

First published on BankersOnline.com 10/25/10