Banking Interpretations

GRBB Part 41

March 29, 2006

From: Alan Weinberg

To: [ ]

Subject: Reg Z Commentary

Your inquiry below was forwarded to me for a reply. Please excuse the delay in responding to you.

Points and fees paid by a seller, lender or other third party are included in the New York points and fees calculation you asked about below. Thus, the New York and federal rules differ on this point.

For your information this question was previously addressed by the Department in an interpretive letter dated September 3, 2004 that is posted on our website and can be found at: http://www.banking.state.ny.us/legal//legal/interpret/lo040903.htm

I trust that this is responsive to your inquiry.

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From: [ ]

Thank you for taking the time to speak with me on Part 41.

My specific question is whether Section 41.1(h)(iii) would exclude broker fees paid directly by the lender and not by the consumer.

I have enclosed the commentary to Section 226.32 of Federal Regulation Z. That commentary clearly specifies in the highlighted language that "Mortgage broker fees that are not paid by the consumer are not included" as points and fees for the high cost home loan rules of Regulation Z.

It would seem that the New York and federal rules would be the same on this point, but I would appreciate you confirming that.

Thank you.