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#1653487 - 01/20/12 03:07 PM Bill Customer For Fees
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
I wasn't sure whether to put this question here or in the RESPA forum.

A customer applied for an interim construction loan and a bridge loan. We provided initial disclosures (GFE/ETIL), the customer provided intent to proceed, we ordered flood, appraisals and survey. Then the applicant decided to put the applications "on hold." The officer wants to send the customer a bill to collect the charges incurred so far for the flood/appraisals/survey. Is this acceptable?

I don't see why it's NOT acceptable, but what if the borrower refuses to pay at this time?
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#1653517 - 01/20/12 03:22 PM Re: Bill Customer For Fees swiggles
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Do you have a processing agreement signed by the applicant that obligates them to pay any expenses incurred if they decide not to proceed with the loan? If you do not then what is your legal authority to try to collect the fees?
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1653629 - 01/20/12 04:47 PM Re: Bill Customer For Fees swiggles
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Good.....I'm on the right track becaust that's what I thought. But would it be "illegal" to attempt to collect the fees?....in other words, send a non-threatening request for payment?
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The more you sweat in training, the less you bleed in battle.......

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#1653677 - 01/20/12 05:11 PM Re: Bill Customer For Fees swiggles
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Whether it's illegal would depend on state law.

I would also advise that if you pursue this applicant then you put a procedure in place to make the same collection effort for all applicants in the same scenario.
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The opinions expressed are mine and they are not to be taken as legal advice.

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