bona fide discount points
Defined in 2 places of the United States Code.
For purposes of clause (ii), the term “bona fide discount points” means loan discount points which are knowingly paid by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the mortgage.
Source
- 2010–present15 U.S.C. § 1639cCommerce and Trade · Minimum standards for residential mortgage loans · under this subchapter
For purposes of paragraph (1), the term “bona fide discount points” means loan discount points which are knowingly paid by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the mortgage.
Source
- 2012–present15 U.S.C. § 1602Commerce and Trade · Definitions and rules of construction · under this subchapter