Which of the following fees or charges is an allowable closing cost typically found on a Closing Disclosure?

Which of the following fees or charges is an allowable closing cost typically found on a Closing Disclosure?

A. Origination charge

B. Referral fee

C. Servicing fee

D. Yield-to-loan fee

View Answer

Answer: A

Explanation:

An origination charge is an allowable closing cost typically found on the Closing Disclosure (CD). This fee is charged by the lender for processing the mortgage application and creating the loan. It may include administrative fees, underwriting fees, and other costs related to loan origination.

Referral fees (B) are illegal under RESPA.

Servicing fees (C) are not typically listed as closing costs but are part of ongoing loan maintenance.

Yield-to-loan fees (D) are not a standard item on a Closing Disclosure.

References:

TILA-RESPA Integrated Disclosure (TRID) Rule

RESPA (Real Estate Settlement Procedures Act) Section 8