Government Affairs              
2018 Talking Points              
Double Counted Fees             

This would remove the double counting of fees in the 3% Fee Cap.  Currently, certain fees are calculated in the APR and additionally counted in the 3% Cap.  This has several unintended consequences that harm the consumer by limiting his loan choices, including under some circumstances, being able to buy down the interest rate.

Following is the Summary on the Congress.gov website:

Mortgage Fairness Act of 2017

This bill amends the Truth in Lending Act to revise the definition of "points and fees," for purposes of determining whether a mortgage is a "high-cost mortgage," to: (1) exclude compensation taken into account in setting the interest rate and for which the consumer was not separately charged, and (2) include compensation paid by a consumer or creditor to an individual employed by or contracting with a mortgage originator. (A high-cost mortgage designation restricts the terms of a loan and requires a lender to make certain disclosures to the borrower.)

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