Which of the following fees is not allowed in a high-cost home loan?

In the context of high-cost home loans, certain fees are regulated to protect consumers from predatory lending practices. The key point regarding fees in this type of loan is that they must not exceed specific thresholds set by the law. In a high-cost loan, points and fees combined should not exceed 5% of the total loan amount for loans over $22,052, or 8% for loans under that amount. Therefore, if the points and fees exceed 2.5% of the total loan amount, it signifies that they are surpassing regulatory limits, rendering this fee unacceptable in the context of high-cost home loans.

Understanding this regulation helps maintain affordability and transparency in lending, ensuring borrowers are not unduly burdened by excessive fees that could lead to financial strain. On the other hand, application fees, title search fees, and appraisal fees may be charged, provided they fall within permissible limits established for high-cost loans. These fees can be legitimate costs associated with the loan process, but they must comply with the relevant laws governing high-cost loans to protect the borrower's financial interests.