Which of the following is included in finance charges?

The inclusion of a mortgage broker fee as part of finance charges is correct because finance charges refer to all costs associated with borrowing that must be disclosed to the borrower. In this case, the mortgage broker fee is a charge that a lender may impose for securing a loan or facilitating the financing process. It is designed to reflect the total cost of the loan, giving borrowers a clear understanding of their financial obligations.

By including mortgage broker fees in the finance charges, borrowers can make better-informed decisions regarding the full cost of obtaining a mortgage. Disclosure of this fee ensures compliance with regulations that mandate transparency in lending practices, thereby protecting consumers.

In contrast, while title insurance charges, document preparation fees, and credit report fees may represent costs associated with the mortgage process, they do not necessarily fall under the category of finance charges as outlined by the Truth in Lending Act. This legislation specifically identifies which charges must be included to provide a comprehensive view of borrowing costs to consumers.