Banking Interpretations

Gen. Reg. Part 41


Alan Weinberg/legal/NYSBD

To [---]

Subject:  Part 41 and Bank Attorney Fees

Your e-mail below was referred to me for a reply. Please excuse the delay in our response.

You are correct with respect to the position you stated in connection with both of your questions:

•  Attorney's fees are not included in the high cost fees calculation of Part 41, unless the lender receives direct or indirect compensation in connection with the charge or the charge is paid to an affiliate of the lender.
•  Pure interest (as opposed to points) is excluded from the high cost fees calculation.

Alan M. Weinberg
Assistant Counsel


To <[email protected]>

Subject FW; Part 41 and Bank Attorney Fees
Hi, Sara. Anthea referred me to you to get clarification on this issue. Can you make a comment via email that attorney's fees are not included in the high cost fees calculation of Part 41, provided that the bank attorney firm is not owned by or affiliated with the mortgage provider (specifically, a registered mortgage broker). Additionally, I had another Lender contend that short term interest is also included within the high cost fees calculation, which is clearly erroneous, in my reading of the applicable regs. Can you be kind enough to include a comment about any prepaid items within this context, as well?
Thanks in advance for your help!