Texas Home Equity Allowed Fees and Charges




Borrower Paid Fees Allowed in 1st Lien Allowed in 2nd Lien Included in 2% Cap
Administrative Fee yes yes (1) yes
Appraisal yes yes (2) no, as long as appraisal is performed by a third-party appraiser
Assignment Fee yes no yes
Brokerage Fee yes yes (3) yes
Closing Fee yes no yes
Commitment Fee yes no yes
Courier Fee / Express Mail yes no (17) yes
Credit Life (Required by Lender) yes yes (4) yes
Credit Report yes yes (5) yes
Deed Restrictions yes no yes
Discount points yes yes no, if bonafide and documented (updated 1/24/2014)
Doc. Prep. (by attorney only) yes yes (7) yes
Escrow Fee (Title Company) yes no (17) yes
Escrow Waiver yes no yes
Flood Certification yes yes (8) yes
Flood Insurance yes yes (8) no
Hazard Insurance yes yes (9) no
GARC Fee yes yes yes, if applicable to required title insurance
Late Charges yes yes (12) no
Mortgage Insurance yes yes (13) yes
Origination Fee yes yes (6) yes
Prepaid Per Diem Interest yes yes no (updated 1/24/2014)
Pest Inspection yes no yes
Post Default Attorney Fee yes yes (14) See (10)
Processing Fee yes no yes
Property Tax yes yes no
Property Tax Certification yes no yes
Property Tax Service Fee yes no yes
Recording Fees yes yes (15) yes
Survey yes yes (11) no, as long as survey is performed by a Texas-licensed or registered surveyor
Title Endorsements yes yes no
Title Insurance Premium yes yes (16) no, as long as mortgage title premium does not exceed state basic rate with applicable endorsements
Title Search Fee yes yes no, if there is not a title policy and the title search fee costs less than the comparable base lender's title policy amount.
Underwriting Fee yes no yes
Warehouse Fee yes no yes

Footnotes:

(1) See TFC 342.308(a)(9) for limiting conditions.
(2) See TFC 342.308(a)(4) for limiting conditions.
(3) See TCCC 1-18-88 letter for limiting conditions.
(4) See TFC 342.308(a)(7) for limiting conditions.
(5) See TFC 342.308(a)(5) for limiting conditions.
(6) See TCCC 7-14-81 letter for limiting conditions.
(7) See TFC 342.308(a)(2) for limiting conditions.
(8) See TFC 342.308(a)(8) for limiting conditions.
(9) See TFC 342.308(b) for limiting conditions.
(10) OCCC 10-07-98 Regulatory Commentary.
(11) See TFC 342.308(a)(6) for limiting conditions.
(12) See TFC 342.302 for limiting conditions.
(13) See TFC 342.308(a)(7) for limiting conditions.
(14) See TFC 342.307(2) for limiting conditions.
(15) See TFC 342.308(a)(3) for limiting conditions.
(16) See TFC 342.308(a)(1)(B) for limiting conditions.
(17) Not allowed if interest rate on loan is above 10%. Otherwise fee is permissible. TFC 342.308.

Other:

Fees paid by lender are not included within the 2% rate cap.
TFC = Texas Finance Code
Modification: Original 2% Cap applies to fees for modification. It is a "life time cap".



Last revised: Dec 30, 2017



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