We had an applicant decide 6 days before closing that they did not want to continue on with the loan. (closing set for 10/04/2018)
We are going to charge them all of their closing fees for services completed. (application, origination, abstracting, title work, inspections, appraisal) Our question is, we are charged $1,000 for appraisals, but we give our applicants a $500 discount and we pay the remaining $500 from the association. We disclosed on the CD issued on 09/26/18 the appraisal fee of $500......would we be able to charge them for how much the actual appraisal costs at $1,000? Or would we still have to go with the $500 since it was what we originally disclosed on the CD?

Thanks!

Would we even be able to charge them for an origination fee?

Unless you have a signed processing agreement that obligates them to pay those fees you have no leg to stand on in trying to collect them. And if you do have such an agreement will it be worth taking them to court if they refuse to pay?

In addition to what Dan said, you will also need to provide them a copy of their appraisal report regardless of whether they pay. (Point being that they don't have much of an incentive to pay it now, which is why banks who want to collect the appraisal fee for loans that don't close do it up front before the appraisal is ordered - but after the LE is provided and the intent to proceed is received.)