Which statement about loan origination fees on a loan estimate is false?

The statement that is identified as false relates to the requirement for itemizing lender and mortgage broker fees for the same transaction. In reality, while lenders and mortgage brokers often work together, it is not mandatory that their fees be itemized separately on the loan estimate. Depending on the specific agreement between the borrower, lender, and broker, these fees may be combined, making it simpler for the borrower to understand the total costs associated with the loan. This can sometimes lead to a more streamlined presentation of costs, avoiding potential confusion for the borrower.

The other statements are accurate reflections of regulations and common practices surrounding loan origination fees. For instance, loan origination fees are typically fixed once the loan estimate is provided, barring significant changes in circumstances, ensuring consistency for the borrower. Furthermore, the origination fees do encompass the services performed directly by the mortgage loan originator (MLO), reflecting the comprehensive costs associated with acquiring the loan. Lastly, conveying origination fees as a lump sum rather than itemizing individual components helps provide clarity regarding the total cost, aligning with regulatory standards meant to inform borrowers transparently.