How are points and fees calculated by the closing agent?
Numerator (Dividend): 800 fields from HUD-1 containing prepaid finance charges paid to lender, mortgage broker, and affiliates + supplemental fields corresponding to HUD-1 Section 1300 including all such fees POC + yield spread premium paid to mortgage broker (Include in Line 801) + FHA upfront MIP or VA funding fee. Denominator (Divisor): Principal amount of new loan from line 202 minus 800 fields containing prepaid finance charges paid to lender, mortgage broker, and affiliates + supplemental fields corresponding to HUD-1 Section 1300 including all such fees POC. Quotient: Numerator divided by Denominator = Points and fees % Notes: 1. Since closing credits may be taken into account, the broker/originator should include in the calculation only those fees actually being paid by the borrower from borrowers’ funds. YSP is always included in the calculation. FHA upfront MIP and VA funding fees are always included in the calculation, whether purchase or refinance, unless the seller is payi
