Bona fide discount points definition

Bona fide discount points means loan discount points which are:

Bona fide discount points means an amount knowingly paid by a borrower for the express purpose of reducing, and that in fact does result in a bona fide reduction of, the interest rate applicable to a residential mortgage loan, as long as the undiscounted interest rate for the residential mortgage loan does not exceed the conventional mortgage rate by more than 2 percentage points for a residential mortgage loan secured by a first lien or by 3 1/2 percentage points for a residential mortgage loan secured by a subordinated lien.[PL 2011, c. 427, Pt. A, §15 (NEW).]

Bona fide discount points means loan discount points that

Examples of Bona fide discount points in a sentence

• Bona fide discount points are interest and are not subject to the two percent limitation.

• Bona fide discount points defined For purposes of clause (ii), the term "bona fide discount points" means loan discount points which are knowingly paid by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the mortgage.

• Bona fide discount points should be excluded from points and fees since they relate to payments on interest.

• Bona fide discount points are those that reduce the interest rate “based on a calculation that is consistent with established industry practices.” The inclusion of originator compensation is a significant development—it may dramatically shrink the “headroom” available under the points and fees test.

• Note that up-front fees a creditor charges consumers to recover the costs of loan-level price adjustments imposed by secondary market purchasers of loans, including the GSEs, are not considered bona fide third-party charges and must be included in points and fees.▪ Bona fide discount points.

More Definitions of Bona fide discount points

Bona fide discount points means loan discount

Bona fide discount points means loan discount points knowingly paid by the

Bona fide discount points means an amount knowingly paid by the borrower for the express purpose of reducing, and which in fact does result in a bona fide reduction of, the interest rate applicable to the home loan; provided the undiscounted interest rate for the home loan does not exceed the conventional mortgage rate by two (2) percentage points for a home loan secured by a first lien, or by three and one-half (3.5) percentage points for a home loan secured by a lien other than a first mortgage. The amount of the interest rate reduction purchased by the discount points must be reasonably consistent with established industry norms and practices for secondary market mortgage transactions. For purposes of the Act it is presumed that a point is a bona fide loan discount point if it reduces the interest rate by a minimum of 25 basis points or ¼ of a point provided all

Bona fide discount points means loan discount points knowingly paid by the borrower for the express purpose of reducing, and which in fact do result in a bona fide reduction of, the interest rate applicable to the home loan; provided, however, that the undiscounted interest rate for the home loan does not exceed by more than one percentage point the required net yield for a 90 day standard mandatory delivery commitment for a home loan with a reasonably comparable term from either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, whichever is greater.

Bona fide discount points means loan discount points that are knowingly paid by the consumer for the purpose of reducing, and that in fact result in a bona fide reduction of, the interest rate or time price differential applicable to the mortgage.

Bona fide discount points means loan discount points knowingly paid by the borrower for the express purpose of reducing, and which in fact do result in a bona fide reduction of, the interest rate applicable to the home loan; provided, that the undiscounted interest rate for the home loan does not exceed the conventional mortgage rate by more than two (2) percentage points for a home loan secured by a first lien, or by more than three and one-half (3.5) percentage points for a home loan secured by a junior lien;

Bona fide discount points means loan discount points that are knowingly paid by the borrower for the express purpose of reducing, and which in fact do result in a bona fide reduction of, the annual percentage rate otherwise applicable to the home loan; provided, however, that discount points are not "bona fide discount points" if the annual percentage rate otherwise applicable to the home loan exceeds the conventional mortgage rate by more than: