Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

Under the Home Ownership and Equity Protection Act (HOEPA), the regulations are designed to protect consumers from high-cost loans by placing limits on fees and charges associated with these loans. A key component is the threshold established for points and fees that, if exceeded, can trigger the provisions of HOEPA.

When calculating the maximum fee a mortgage broker may receive without triggering HOEPA, the act states that the total points and fees cannot exceed a certain percentage of the loan amount. In this scenario, where the total points and fees charged by the lender amount to $10,000, the broker's fee is determined to be a maximum of 5% of that amount. Thus, 5% of $10,000 equals $500.

However, the context of the question is specifically asking about the maximum fee permissible for the broker in excess of the points and fees outlined. Under HOEPA, the maximum broker's fee that can be charged without causing HOEPA regulations to be triggered would be positioned within the context of those permissible fees and charges.

In this case, the correct answer is founded on understanding the permissible thresholds set under HOEPA. The maximum allowable broker fee that ensures compliance without triggering HOEPA is $5,000 when viewed against the full spectrum of