Bona fide loan discount points means loan discount points knowingly paid by the borrower 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 loan, provided the amount of the interest rate reduction purchased by the discount points is reasonably consistent with established industry norms and practices for secondary mortgage market transactions.
Bona fide loan discount points means loan discount points
Bona fide loan discount points means loan discounts points actually paid by the borrower to the lender for the purpose of reducing, and which in fact result in a bona fide reduction of the interest rate applicable to the loan by a minimum of twenty-five (25) basis points per discount point.
Examples of Bona fide loan discount points in a sentence
Bona fide loan discount points" means loan discount points knowingly paid by the borrower and funded through any source 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 loan, provided the amount of the interest rate reduction purchased by the discount points is reasonably consistent with established industry norms and practices for secondary mortgage market transactions.
More Definitions of Bona fide loan discount points
Bona fide loan discount points means loan discount points paid 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 loan, provided the amount of the interest rate reduction purchased by the discount points is reasonably consistent with established industry norms and practices for secondary mortgage market transactions. For purposes of 209 CMR 32.32, it shall be presumed that a point is a bona fide loan discount point if it reduces the interest rate by a minimum of 35 basis points or 3/8 of a point provided all other terms of the loan remain the same. Only three (3) discount points shall be considered bona fide for purposes of this section.
Bona fide loan discount points means loan discount points which are knowingly paid by the borrower for the express purpose of reducing, and which reduce, the annual percentage rate.
Bona fide loan discount points means loan discount points which are knowingly paid by the borrower for the express purpose of reducing, and which reduce, the annual percentage rate.. This does not exempt bona fide discount points from the calculations in the APR and fee tests.