West Virginia Mortgage Law Practice Test

Ryan may only charge origination fees or points if at least how many months have passed since origination of the previous loan?

1. 24 months

2. 12 months

3. 6 months

4. 18 months

The correct answer is: 24 months

The correct answer is based on the regulations governing the origination of loans in West Virginia. According to the guidelines, lenders are typically required to wait a specified period after the origination of a previous loan before they can impose origination fees or points on a new loan. In this context, it is established that a minimum of 24 months must pass since the origination of the previous loan for the lender, in this case Ryan, to charge such fees again. This regulation helps to protect consumers from excessive fees that could arise from repeatedly refinancing loans within a short period. The other options provided do not meet the regulatory requirement, as they suggest shorter intervals which do not align with the 24-month stipulation necessary to allow origination fees or points to be charged again. By adhering to the 24-month timeframe, Ryan ensures compliance with the law and protects borrowers from potential financial burdens associated with frequent loan origination fees.