1. The total loan amount is the amount financed less certain charges that are both included in the points and fees and financed by your bank. Those charges include:
– 1026.32(b)(1)(iii)- items listed in 1026.4(c)(7) unless e charge is reasonable and neith your bank or any affiliate receives the fee;
– 1026.32(b)(1)(iv)- credit life and related insurance; and
– 1026.32(b)(1)(v)- prepayment penalty.
2. The initial escrow deposit is excluded if the charge is reasonable and not paid to your bank or an affiliate. The homeowners insurance is excluded as long as you disclose that the insurance may be obtained from an agent the consumer chooses.