Charging origination fee as a discount point
In the course of discussion with a RE Broker, the broker stated that they advised all of their clients to request their RMLO charge their origination fee as a discount point.
The intent is to capture the tax write off of a discount point. The broker claimed some RMLO's have obliged the request.
I was under the impression that a discount point could only be used to reduce the interest rate.
In the context of a residential, primary residence, fha/conforming conventional loan, does this violate any of the alphabet soup of Regulations?