The Federal Reserve Board proposed new guidance on mortgage fees and finance charges in a Nov. 15 staff commentary.

The proposal would clarify that application fees paid to mortgage brokers may be excluded from Truth-in-Lending disclosures. It also states that debt cancellation contracts, which are a form of mortgage insurance, may be excluded. The document explains when a bank should exclude from the finance charge points paid by the seller on the borrower's behalf.

The commentary is available from the Fed. Comments on it are due Jan. 6.

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