Just because a lender has an “affiliated business arrangement” with a service provider, that does not mean their fees are to be included in the points & fees test. Right?

I thought only fees to an actual affiliate of the bank (i.e. a 23A affiliate) would be included (for this example, the provider that they have an affiliated business arrangement with is NOT a 23A affiliate).

Just because a lender has an “affiliated business arrangement” with a service provider

How can a lender have such a relationship and the bank does not???

The lender is the Bank - should have been more specific.

(5) Affiliate means any company that controls, is controlled by, or is under common control with another company, as set forth in the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.).

An Affiliated Business Arrangement (AfBA) Disclosure is required whenever a settlement service provider involved in a RESPA covered transaction refers the consumer to a provider with whom the referring party has an ownership or other beneficial interest.

If your bank has an affiliated business arrangement (AfBA) with a service provider, fees payable to those affiliated businesses must be included in the calculation of points and fees for the purposes of QM eligibility.