Finance Charge Matrix

Finance Charge Matrix

The Texas Department of Savings and Mortgage Lending has adopted, with slight modification, the Multi-State Mortgage Committee finance charge matrix. This matrix lists various fees or charges, whether or not the fees or charges are considered finance charges, and the applicable citation to Section 1026.4 of Regulation Z or the Official Commentary to Reg Z. Note that where a particular fee or charge, such as the flood certification fee, can be either a finance charge or not a finance charge, the fee/charge is listed twice with a different charge code assigned. This matrix is for examination purposes only. It is not intended as legal advice. Reliance on this material for any other purpose should include attorney consultation.

Fee or Charge

Finance Charge

Citation

Abstract Title Search

N

Accident Insurance

N1

Administration Fee

Y

Application Fee

Y2

Appraisal Fee

N3

Appraisal Review Fee

N3

Assignment Fee

Y

Attorneys Fee

N

Attorney Trust Review

Y

Broker Fee

Y

Buydown Fee

Y

City Stamp Mortgage

N

City Tax Stamps

N

Closing Fee

N

Commitment Fee

Y

County Tax

N

Courier Fee

Y

Credit Life Insurance

N1

Credit Report

N3

Debt Cancellation Ins.

N1

Demand Bene Fee

Y

Disability Ins. Premium

N1

Discount Fee

Y

Document Fee

N3

Document Review

N3

Email Fee

Y

Endorsement Fee

N3

Environmental Fee

N3

Escrow Fee- Closing Agent

N

Escrow Waiver Fee

Y

Flood Certification Life of Loan Y

Flood Certification

N3

Flood Determination Life of Loan Y

Flood Insurance Premium

N4

Funding Fee

Y

Hazard Insurance Premium

N4

Health Insurance

N1

Inspection Fee- Construction

Y

Intangible Tax

N

Interest

Y

Lender Coverage Fee

N

Loss-Of-Income Insurance

N1

MERS Registration Fee

Y

Messenger Fee

Y

MIP Cash

Y

Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(d)(1) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(c)(1) Reg. Z ? 1026.4(c)(7)(iv) Reg. Z ? 1026.4(c)(7)(iv) Reg. Z ? 1026.4(b)(6) Official Staff Commentary ? 1026.4(a)(2)-2 Reg. Z ? 1026.4(c)(7) Reg. Z ? 1026.4(a)(3) Reg. Z ? 1026.4(b)(3) Official Staff Commentary ? 1026.4(a)-5(iii) Official Staff Commentary ? 1026.4(a)-5(iii) Official Staff Commentary ? 1026.4(a)(2)-2 Reg. Z ? 1026.4(b)(3) Official Staff Commentary ? 1026.4(a)-5(iii) Official Staff Commentary ? 1026.4(a)(2)-1 Reg. Z ? 1026.4(d)(1) Reg. Z ? 1026.4(c)(7)(iii) Reg. Z ? 1026.4(d) Official Staff Commentary ? 1026.4(b)(5)-2 Reg. Z ? 1026.4(d)(1) Reg. Z ? 1026.4(b)(3) Reg. Z ? 1026.4(c)(7)(ii) Reg. Z ? 1026.4(c)(7)(ii) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(c)(7)(i)

Reg. Z ? 1026.4(c)(7)(i) Official Staff Commentary ? 1026.4(a)(2)-2 Reg. Z ? 1026.4(a)(2) Official Staff Commentary ? 1026.4(c)(7)-3 Reg. Z ? 1026.4(c)(7)(iv) Official Staff Commentary ? 1026.4(c)(7)-3 Reg. Z ? 1026.4(d)(2)

Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(d)(2) Reg. Z ? 1026.4(d)(1) Reg. Z ? 1026.4(c)(7)(iv) Official Staff Commentary ? 1026.4(a)-5(iii) Reg. Z ? 1026.4(b)(1) Reg. Z ? 1026.4(d) Reg. Z ? 1026.4(d)(1) Reg. Z ? 1026.4(b)(6) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(5)

Fee or Charge

MIP Financed MIP Refund Mortgage Tax Non Prepaid Misc. Notary Fee Other Insurance Premium Origination Fee Prepaid Misc. Processing Fee Quit Claim Fee Recording / Filing Fee RF Reconveyance Fee Redraw Fee Signer Fee State Tax Stamps Sub Escrow Fee Survey Fee Tax Certificate Fee Tax Service Fee Termite Fee Tie In Fee Title Binder Fee Title Document Fee Title Exam Fee Title Fee Title Insurance Trustee Fee TX Guaranty Fee Underwriting Fee Unemployment Insurance VA Funding Fee USDA Funding Fee VA Funding Fee Cash VA Funding Fee Financed Verification Fee Warehouse Fee Wire Fee

Finance Charge

Y N N N N3 N3 Y Y Y N3 N5 N3 N3 Y N Y N3 N3 Y N3 Y Y N3 N3 N3 N3 Y N3 Y N1 Y Y Y Y Y Y Y

Citation

Reg. Z ? 1026.4(b)(5) None Official Staff Commentary ? 1026.4(a)-5(iii) None Reg. Z ? 1026.4(c)(7)(iii) Reg. Z ? 1026.4(d)(1) Reg. Z ? 1026.4(b)(3) None Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(c)(7)(ii) Official Staff Commentary ? 1026.4(e)-1 Reg. Z ? 1026.4(c)(7)(ii) Reg. Z ? 1026.4(c)(7)(ii) Reg. Z ? 1026.4(a)(2) Official Staff Commentary ? 1026.4(a)-5(iii) Reg. Z ? 1026.4(a)(2) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(c)(7)(iv) Reg. Z ? 1026.4(b)(3) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(a) Reg. Z ? 1026.4(c)(7)(i) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(d)(2) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(2) Reg. Z ? 1026.4(b)(2)

1 May be excluded from the Finance Charge if the following conditions are met: (i) The insurance coverage is not required by th e creditor, and this fact is disclosed in writing; (ii) The premium for the initial term of insurance coverage is disclosed. If the term of insurance is less than the term of the transaction, the term of insurance also shall be disclosed. The premium may be disclos ed on a unit-cost basis only in open-end credit transactions, closed-end credit transactions by mail or telephone under ?1026.17(g), and certain closed-end credit transactions involving an insurance plan that limits the total amount of indebtedness subject to coverage; (iii) The consumer signs or initials an affirmative written request for the insurance after receiving the disclosures specified in this paragraph. Any consumer in the transaction may sign or initial the request.

2 Not a finance charge when extended to all applicants.

3 Real-Estate Related Fees in a transaction secured by real property or in a residential mortgage transaction are excluded from Finance Charge, if the fees are bona fide and reasonable in amount.

4 May be excluded from the Finance Charge if the following conditions are met: (i) The insurance coverage may be obtained from a person of the consumer's choice, and this fact is disclosed; (ii) If the coverage is obtained from or through the creditor, the premium for the initial term of insurance coverage shall be disclosed. If the term of insurance is less than the term of the transaction, the term of insurance shall also be disclosed. The premium may be disclosed on a unit-cost basis only in open-end credit transactions, closed-end credit transactions by mail or telephone under ?1026.17(g), and certain closed-end credit transactions involving an insurance plan that limits the total amount of indebtedness subject to coverage.

5 Not a Finance Charge if paid to a government entity.

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