I need some fellow BOLer's and Guru's assistance on this one. I've read 1026.19(e) regarding imposing a fee and distribution of early disclosures. I know that we cannot impose a fee until the customer has received the disclosures required by § 1026.19(e)(1)(i) and indicated an intent to proceed with the transaction.

Our processing departments generally mail an early disclosure package to the borrower. This contains Loan Estimate, Provider List, Notice of Intent and other documents. Our practice is to have a signed Notice of Intent and then collect an appraisal fee.

My question is whether it is a permissible practice to send along with the early disclosures, a form that would indicate the method of payment for the appraisal if they choose to move forward with the loan application? This form would be an in house document that would simply indicate the method of payment for the cost of the appraisal and if paying by check, to include the check, and if paying be credit card, to include the credit card information. This form would be mailed back to the bank or given to a lender in combination with their signed and dated Notice of Intent to Proceed.

Again, I know we cannot collect the fee prior to obtaining the signed Notice of Intent; however, the form collected regarding the payment is being received in combination with the Notice of Intent. Understanding its a very very thin line and not sure I even want to mess with it but I told management I would review and discuss with them later. I've already asked my regulator and they just refer me to the the section I noted above.

As long as the form is being returned with their intent to proceed I see no issues.

I totally agree with Dan. Think about adding an option to that form: "Charge my YOURBANK account" ( customer supplies checking or savings account number).

Thank you both for your input. I really appreciate it.