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#2184990 - 07/11/18 03:25 PM Credit Report Fees
complyorelse Offline
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Registered: 11/14/07
Posts: 300
Loc: U.S.
Since credit report fees are a zero tolerance item, once disclosed, they should not increase. However, the actual charges by the time a loan originates often increase. This may be due to a re-pull for some reason, an automated underwriting may need to be updated, a file separated, etc. Is it possible to have a COC when these circumstances arise? Some investors will not allow an increase at all and will present a cure on the CD, some will do a COC sometimes but not always, and our portfolio loans we just cure.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2184991 - 07/11/18 03:31 PM Re: Credit Report Fees [Re: complyorelse]
RR Joker Offline
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Registered: 11/15/02
Posts: 19962
Loc: The Swamp
You should probably be using an average charge. That will prevent such problems.
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#2185018 - 07/11/18 04:00 PM Re: Credit Report Fees [Re: complyorelse]
complyorelse Offline
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Registered: 11/14/07
Posts: 300
Loc: U.S.
We are, but still find ourselves with scenarios well above the average. For example, a joint application came in so we pulled their credit, ran DU, and then the borrowers changed their mind and only one of the borrowers was going to remain on the application. We had to start over with a new application per our investor and quite frankly software too, but the tri-merge provider lumps all of the charges (reissue included) together on the invoice. It doesn't seem that we could charge the borrower the fees from the first application (joint) even though they requested the change since we had to start over with a new app. By using the average for a single pull, we're eating a lot of money.

We aren't supposed to put in an amount that is inflated, but find we're curing a lot of loans. Sometimes small amounts, but sometimes it is substantial.

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#2185024 - 07/11/18 04:25 PM Re: Credit Report Fees [Re: complyorelse]
RR Joker Offline
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Registered: 11/15/02
Posts: 19962
Loc: The Swamp
That's why you 'renew' your average every 6 months...to capture current averages. If you charge an average, you are charging everyone on the same basis.

I don't believe this was meant to fall under 'inflated charge' rules.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2185033 - 07/11/18 05:18 PM Re: Credit Report Fees [Re: complyorelse]
complyorelse Offline
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Registered: 11/14/07
Posts: 300
Loc: U.S.
Great. Thank you for your feedback. It is most appreciated.

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#2185034 - 07/11/18 05:35 PM Re: Credit Report Fees [Re: complyorelse]
Truffle Royale Offline


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Registered: 07/09/03
Posts: 16671
why is your investor making you start a new application? Have you tried talking to your investor's compliance manager on this?

And how isn't it fair to charge the borrower for a credit report they had you pull by virtue of them submitting a joint application?

imho, this is a counter-offer and if you treat it as such, you have a valid CC to redisclose and add on the additional fees.

fwiw, here we use a figure high enough to capture the original pull and a soft-pull five days prior to closing which is a FNMA investor requirement. If we have to repull for any reason other than a bank error, there is most likely a valid CC to use to pass the increase to the borrower.

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#2185319 - 07/13/18 12:19 PM Re: Credit Report Fees [Re: complyorelse]
complyorelse Offline
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Registered: 11/14/07
Posts: 300
Loc: U.S.
The primary borrower was the one being removed so systems wouldn't allow it. AUS was the problem.

I think it is fair that we charge but didn't want a violation. I do think it is a CC. Thank you for helping me come to that!

Thank you very much.

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