Provided that you are not retaining any portion of the closing costs, we believe that lender paid closings costs would be excluded from the “points and fees” calculation. The Illinois High Risk Home Loan Act (IHRHLA) exempts “bona fide third-party charges not retained by the mortgage originator, creditor, or an affiliate of the mortgage originator or creditor” from the points and fees calculation. 815 ILCS 137/10. As a result, any third party charges that your institution pays will not count towards the “points and fees” trigger for purposes of the Illinois law.