Texas Home Equity Allowed Fees and Charges
| Borrower Paid Fees |
Allowed in 1st Lien |
Allowed in 2nd Lien |
Included in 3% Cap |
| Administrative Fee |
yes |
yes (1) |
yes |
| Appraisal |
yes |
yes (2) |
yes |
| Assignment Fee |
yes |
no |
yes |
| Brokerage Fee |
yes |
yes (3) |
yes |
| Closing Fee |
yes |
no |
yes |
| Commitment Fee |
yes |
no |
yes |
| Courier Fee / Express Mail |
yes |
no (17) |
yes |
| Credit Life (Required by Lender) |
yes |
yes (4) |
yes |
| Credit Report |
yes |
yes (5) |
yes |
| Deed Restrictions |
yes |
no |
yes |
| Discount points |
yes |
yes (6) |
yes (6) |
| Doc. Prep. (by attorney only) |
yes |
yes (7) |
yes |
| Escrow Fee (Title Company) |
yes |
no (17) |
yes |
| Escrow Waiver |
yes |
no |
yes |
| Flood Certification |
yes |
yes (8) |
yes |
| Flood Insurance |
yes |
yes (8) |
no (3) |
| Hazard Insurance |
yes |
yes (9) |
no |
| Late Charges |
yes |
yes (12) |
no |
| Mortgage Insurance |
yes |
yes (13) |
yes |
| Origination Fee |
yes |
yes (6) |
See (10) |
| Pest Inspection |
yes |
no |
yes |
| Post Default Attorney Fee |
yes |
yes (14) |
See (10) |
| Processing Fee |
yes |
no |
yes |
| Property Tax |
yes |
yes |
no |
| Property Tax Certification |
yes |
no |
yes |
| Property Tax Service Fee |
yes |
no |
yes |
| Recording Fees |
yes |
yes (15) |
yes |
| Survey |
yes |
yes (11) |
yes |
| Title Insurance Premium |
yes |
yes (16) |
yes |
| Underwriting Fee |
yes |
no |
yes |
| Warehouse Fee |
yes |
no |
yes |
Footnotes:
(1) See TFC 342.308(a)(9) for limiting conditions.
(2) See TFC 342.308(a)(4) for limiting conditions.
(3) See TCCC 1-18-88 letter for limiting conditions.
(4) See TFC 342.308(a)(7) for limiting conditions.
(5) See TFC 342.308(a)(5) for limiting conditions.
(6) See TCCC 7-14-81 letter for limiting conditions.
Not included if determined to be "interest." (i.e. not a fee required
by lender from Borrower to "originate" loan.) Best practice
would be to evidence borrower's election (i.e. "does not require") to
choose lower rate with discount point(s) in lieu of higher rate with no
discount point(s).
(7) See TFC 342.308(a)(2) for limiting conditions.
(8) See TFC 342.308(a)(8) for limiting conditions.
(9) See TFC 342.308(b) for limiting conditions.
(10) OCCC 10-07-98 Regulatory Commentary.
(11) See TFC 342.308(a)(6) for limiting conditions.
(12) See TFC 342.302 for limiting conditions.
(13) See TFC 342.308(a)(7) for limiting conditions.
(14) See TFC 342.307(2) for limiting conditions.
(15) See TFC 342.308(a)(3) for limiting conditions.
(16) See TFC 342.308(a)(1)(B) for limiting conditions.
(17) Not allowed if interest rate on loan is above 10%. Otherwise fee is
permissible. TFC 342.308.
Other:
Fees paid by lender are not included within the 3% rate cap.
TFC = Texas Finance Code
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