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#2118505 - 02/16/17 12:47 PM Overcharging for Credit Report Fees
Vive Accommodare Offline
Gold Star

Registered: 04/11/13
Posts: 265
Loc: Compliance
In the case a borrower is overcharged for a credit report, are we required to reimburse them for the overage? Even in the case of the seller paying for fee and being overcharged?
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#2118556 - 02/16/17 02:48 PM Re: Overcharging for Credit Report Fees [Re: Vive Accommodare]
Darth HMDA Offline
Platinum Poster

Registered: 12/13/13
Posts: 867
Loc: CA
Yes. IMO you need to reimburse and send a corrected disclosure.
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#2118558 - 02/16/17 02:53 PM Re: Overcharging for Credit Report Fees [Re: Vive Accommodare]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 61152
Loc: Galveston, TX
1024.14—Prohibition against kickbacks and unearned fees.

(c) No split of charges except for actual services performed. No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed. A charge by a person for which no or nominal services are performed or for which duplicative fees are charged is an unearned fee and violates this section. The source of the payment does not determine whether or not a service is compensable. Nor may the prohibitions of this part be avoided by creating an arrangement wherein the purchaser of services splits the fee.
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#2118581 - 02/16/17 04:23 PM Re: Overcharging for Credit Report Fees [Re: Vive Accommodare]
Vive Accommodare Offline
Gold Star

Registered: 04/11/13
Posts: 265
Loc: Compliance
So, if after closing we find that a borrower was charged excess (PAC) for the credit report fee, we would need to send them the difference? I'm just trying to gather the information before we take it to the disclosure desk.
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"Tact is telling someone to go to [censored] in such a way, they look forward to the trip" Winston Churchill

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#2118588 - 02/16/17 04:38 PM Re: Overcharging for Credit Report Fees [Re: Vive Accommodare]
HuskersForRiley! Offline
Gold Star

Registered: 03/25/11
Posts: 385
Loc: SE, Nebraska
When Vive's Q is answered, maybe someone can weigh in on this similar issue...
We are seeing Credit Report charges varying quite a bit lately. What are others doing to address this on the LE? Averaging?

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#2118598 - 02/16/17 04:47 PM Re: Overcharging for Credit Report Fees [Re: HuskersForRiley!]
PCBDebbie, CRCM Offline
100 Club

Registered: 08/28/15
Posts: 107
You may have a bigger issue on your hands. Why is there a difference in the charges? We had an issue in the past, where the credit company we used was charging one price for individual reports and a lower price for borrowers that have merged credit reports. This ended up being a Reg B issue because the merged reports were borrowers that were married in most cases versus non married individuals.

We have since had this corrected and all orders are charged the same amount per borrower.

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#2118636 - 02/16/17 08:27 PM Re: Overcharging for Credit Report Fees [Re: Vive Accommodare]
Truffle Royale Offline


10K Club

Registered: 07/09/03
Posts: 15909
To the first question, yes, you must redisclose and refund the overage. Include a letter explaining what happened and why.

As for variations in credit report fees, after resolving an issue similar to what Debbie outlined, we show a set amount on every LE that is sufficient to cover basic report plus a soft pull as required by FNMA QC.

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#2118664 - 02/17/17 08:44 AM Re: Overcharging for Credit Report Fees [Re: Vive Accommodare]
HuskersForRiley! Offline
Gold Star

Registered: 03/25/11
Posts: 385
Loc: SE, Nebraska
Thanks. It was the soft pull scenario. This will be a standardization topic in the near future.

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