1. (a) Except as provided in subsection (b), "points and fees" means the total of the following:

   1. (1) Points and fees (as defined in 12 CFR 226.32(b)(1) on January 1, 2004).

   2. (2) All compensation paid directly or indirectly to a mortgage broker, including a broker that originates a loan in the broker's own name.

      As used in subdivision (2), "compensation" does not include a payment included in subdivision (1).

2. (b) The term does not include the following:

   1. (1) Bona fide discount points.

   2. (2) An amount not to exceed one and one-half (1 1/2) points in indirect broker compensation, if the terms of the loan do not include:

      1. (A) a prepayment penalty, in the case of a home loan described in IC 37-5-3-6 (b); or
      2. (B) a prepayment penalty that exceeds two percent (2%) of the home loan principal, in the case of a home loan other than a home loan described in IC 37-5-3-6 (b).
   3. (3) Reasonable fees paid to an affiliate of the creditor.

   4. (4) Interest prepaid by the borrower for the month in which the home loan is closed.

      [Pre-2026 Revision Citation: 24-9-2-10.]

As added by P.L.115-2026, SEC.97.