We have a situation where a customer went through the entire loan application process and racked up some pretty considerable fees in that there was a pair off fee etc. A couple of days before signing the note they decided that they were going somewhere else. They have their current mortgage with us, when the "somewhere else" calls to get their pay off statement, are we allowed to recoup those fees on the pay off?

Under what legal authority (contract) are you proposing to recoup those fee? They have absolutely nothing to do with the loan they are paying off.

I see what you are saying, that would be a big fat no with adding the costs of a perspective loan with an already existing, one has nothing to do with the other loan.

Is there anyway that we can recoup these fees outside of the application deposit ?

Not without a signed agreement.

We do have a signed mortgage pricing agreement form that states

"I agree and commit to the interest rate quoted and accept the responsibility of any fees or costs the Bank may incur for my failure to close at the above stated rate on or before the Locked Expiration date"

We also have a signed Notice Regarding Your Loan Application.

Does that get us anywhere?

Only your attorney can advise you on the sufficency of those documents to allow you to try to collect the fees you believe are owed.

Thank you