What must a borrower provide to finance points and fees under Title 46?

• A. Proof of income
• B. Credit history
• C. Counseling certification
• D. Down payment confirmation

Answer: (C)

To finance points and fees under Title 46, the borrower is required to provide a counseling certification. This certification indicates that the borrower has received the necessary counseling about the loan terms, costs, and the implications of financing points and fees. Counseling is a crucial step in ensuring that borrowers understand their options and can make informed decisions regarding their loans.

This requirement emphasizes the importance of borrower education in the lending process, particularly for loans that involve financing points and fees, which can significantly impact the overall cost of the mortgage. The counseling certification serves as a safeguard for both the lender and the borrower, ensuring that the borrower is aware of their financial obligations and understands the loan they are entering into.

While proof of income, credit history, and down payment confirmation are essential components in the mortgage application process, they do not specifically pertain to the financing of points and fees under Title 46, which uniquely focuses on providing borrowers with adequate counseling to make informed financial decisions.