Reg Z – How should the Loan Costs - Origination Charges section be completed on the Loan Estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  How should the Loan Costs – Origination Charges section be completed on the Loan Estimate?
 
 
A:  Regulation Z has technical requirements for the completion of the Origination Charges section.  While creditors should review regulatory conditions and commentary, a general description of the requirement is as follows: 
 
The Origination Charges section is included as one category of Loan Costs and is to be completed by itemizing each amount that the consumer will pay to each creditor and loan originator.  This would include, as applicable:
 
  • Points paid to the creditor to reduce the interest rate – as a % of the amount of credit and a $ amount
  • Other applicable items, which may include:
    • Application fee
    • Origination fee
    • Underwriting fee
    • Processing fee
    • Verification fee
    • Rate-lock fee
 
NOTE:  The number of items disclosed in this section, including the points, shall not exceed 13.
 
 
For example, as excerpted from the fixed rate loan sample H-24(B), this could appear as follows:
 
 
 
ADDITIONAL INFORMATION – The regulatory citation for this topic is 12 CFR 1026.37(f). 

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