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#1655229 - 01/24/12 08:35 PM Collecting Fees Prior to GFE
ComplianceNerd Offline
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Joined: Nov 2011
Posts: 378
Texas ...
What fees are ok to collect prior to the GFE being given to the customer?
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RESPA
#1655232 - 01/24/12 08:38 PM Re: Collecting Fees Prior to GFE ComplianceNerd
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,398
ONLY the fee for the credit bureau report.
Absolutely NOTHING else!
RESPA is very clear about this.

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#1655247 - 01/24/12 09:01 PM Re: Collecting Fees Prior to GFE ComplianceNerd
ComplianceNerd Offline
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Joined: Nov 2011
Posts: 378
Texas ...
That's what I was thinking... Thanks!
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#1655252 - 01/24/12 09:22 PM Re: Collecting Fees Prior to GFE ComplianceNerd
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
You do not only have to issue the GFE but receive the customer's intent to proceed before you can collect money or income/deposit info per RESPA

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#1655254 - 01/24/12 09:22 PM Re: Collecting Fees Prior to GFE ComplianceNerd
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
...except for the credit report as noted by TR

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#1659467 - 02/01/12 10:34 PM Re: Collecting Fees Prior to GFE ComplianceNerd
mac444 Offline
Member
Joined: May 2011
Posts: 78
If a fee was collected prior to issuing the GFE, what is the penalty/restitution?

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#1659486 - 02/01/12 11:43 PM Re: Collecting Fees Prior to GFE ComplianceNerd
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,363
Galveston, TX
In the GFE Section of RESPA
Violations of section 5 of RESPA (12 U.S.C. 2604).

A loan originator that violates the requirements of this section
shall be deemed to have violated section 5 of RESPA.

There are no specific penalties outlined in RESPA for a Section 5 violation, so you are at the whim of your regulator.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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