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#1177454 - 05/06/09 09:04 PM Application fee - unallocated
Jeff79 Offline
100 Club
Joined: Dec 2008
Posts: 111
Our Mortgage LO wants to charge a $50 non-refundable application fee on home improvement loans. We are treating it as a finance charge in case we decide to waive one here or there. Here's my question: this application fee is not designed to cover any specific costs such as credit report or appraisal -- the intent is to help offset general overhead. From a compliance standpoint, is this unallocated format permitted?

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Lending Compliance
#1177646 - 05/07/09 01:23 PM Re: Application fee - unallocated Jeff79
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,843
Bloomington, IN
Yes.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1177856 - 05/07/09 03:11 PM Re: Application fee - unallocated Dan Persfull
Jeff79 Offline
100 Club
Joined: Dec 2008
Posts: 111
Thank you.

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