Skip to content
GeoDataVision
Thread Options
#1655229 - 01/24/12 08:35 PM Collecting Fees Prior to GFE
ComplianceNerd Offline
Gold Star
Joined: Nov 2011
Posts: 376
Texas ...
What fees are ok to collect prior to the GFE being given to the customer?
_________________________
Can't is not an option.

Return to Top
RESPA
#1655232 - 01/24/12 08:38 PM Re: Collecting Fees Prior to GFE ComplianceNerd
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,356
ONLY the fee for the credit bureau report.
Absolutely NOTHING else!
RESPA is very clear about this.

Return to Top
#1655247 - 01/24/12 09:01 PM Re: Collecting Fees Prior to GFE ComplianceNerd
ComplianceNerd Offline
Gold Star
Joined: Nov 2011
Posts: 376
Texas ...
That's what I was thinking... Thanks!
_________________________
Can't is not an option.

Return to Top
#1655252 - 01/24/12 09:22 PM Re: Collecting Fees Prior to GFE ComplianceNerd
RulesFollower Offline
100 Club
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

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

Return to Top
#1659467 - 02/01/12 10:34 PM Re: Collecting Fees Prior to GFE ComplianceNerd
mac444 Online
Member
Joined: May 2011
Posts: 77
If a fee was collected prior to issuing the GFE, what is the penalty/restitution?

Return to Top
#1659486 - 02/01/12 11:43 PM Re: Collecting Fees Prior to GFE ComplianceNerd
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,912
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  QCL