What does Dodd-Frank actually say concerning the 3% cap on origination fees?I'm thinking of purchasing a home this year. I was a contractor until a couple of years ago. I would like to purchase a forclosure that needs work at a discounted price, and do the work myself to build equity. I'm hoping to find a home that qualifies for a USDA loan, so that I can use money for repairs instead of a down payment. I'm a little confused as to what the rule concerning a cap on origination fees is under the new Dodd-Frank Act. I've heard everything from the rule applying to all loans, to the rule only applying to loans of $100,000 or more. I'm presently looking at a forclosure that is listed for $79,900, but I believe that the bank would accept an offer of quite a bit less than the asking price as the house needs a lot of work. The problem is that if I offer much less than the asking price most lenders will exceed that 3% cap in their origination fees. Does the new law actually prevent buyers from being able to finance a home at a reduced price?? this seems absurd to me. That would mean only buyers who can afford to pay cash could buy a $60,000 home. That rules out pretty much everyone except investors. Is that what the new law actually says, or have I been misinformed? If that is in fact what the law says, is there any way around it?March 01 2014 - Central00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.