NMLS Uniform State Test (UST) Mortgage Practice Exam

The notary fee is typically not included as part of the finance charge because it is considered a separate fee related to the execution of documents rather than the cost of financing the loan itself. The finance charge generally encompasses the cost of borrowing, which includes fees that are directly associated with the lender's processing of the loan and the interest charged over the life of the loan.

In contrast, the credit report fee, origination fee, and loan processing fee are considered part of the finance charge because they directly contribute to the overall cost of borrowing. These fees reflect the lender's administrative and underwriting costs associated with evaluating and approving the loan request. Fees that are related to services that do not pertain to the loan's underwriting or processing, such as notarization, are excluded from the finance charge, making them separate from the calculation of the total cost of the loan.