What is the maximum total points and fees a lender or broker may collect on a mortgage loan, excluding third-party fees?

The correct answer is 6%. In the context of mortgage loan origination, the total points and fees that a lender or broker may collect are capped at a certain percentage, which is designed to protect consumers from excessive charges. This limit is based on the loan amount and ensures that borrowers are not overcharged when obtaining financing.

Specifically, for loans that fall under the category of qualified mortgages (QMs) established by regulations, the total points and fees—including origination charges, points paid by the borrower, and other fees charged by the lender—cannot exceed 3% for loans exceeding a certain threshold. However, additional fees may significantly influence lower loan amounts.

The designation of 6% serves as a benchmark for consumer protection laws in certain lending scenarios. Understanding these limits is crucial for mortgage loan originators as they guide borrowers toward fair and reasonable loan costs while remaining compliant with federal regulations.