Applying the Fair Tax to the "points" on a mortgage loan is different from applying the Fair Tax to interest income. Points would be a charge for mortgage origination services, even thought the charge is stated as if it were interest on the funds loaned. Thus, it is a matter of assuring that a charge for services is not masked as an interest/income payment. Thanks for your response.
It was merely my interpretation of the bill. I consider points to be a part of the interest on the loan since the higher the points the lower the interest normally. I mis-stated the tax direction originally because it is not paid by the mortgagor, it is paid by the borrower since he is the procurer of the services. Just as the retail buyer is the taxpayer under the FT. Regards.