We disclosed a $450 Appraisal fee on the LE. Notice of Intent to Proceed was signed and returned. Loan was approved subject to appraisal. Appraisal came back with a $900 fee due to some easement issues that we were unaware of at application. LO did not notify processing of the changed fee so we missed our 3 day window to re-disclose.

Easement issues were never resolved and borrower decided to buy the property with their own funds and work on easement themselves. They withdrew our request. LO has asked whether we can bill them for the $900. The borrowers are willing to pay the $900. My short answer was no, we need to bill them for the $450 but I thought I would verify.

Everything that I can find talks about matching the fee from the LE to the CD for the tolerance cure. We don't have a CD. Any thoughts on collecting the $900 vs the $450? Thanks!

Totally depends on whether you had an agreement with the applicant to pay for the appraisal if they withdrew. Otherwise, I am not sure how you have the right to ask for payment. I think this falls outside of TRID since they withdrew their application.

We have billed and they either pay or don't. If they don't pay, we don't go after them legally or anything like that. It is a loss at that point.

Actually, I found it. We have our applicants sign a commitment letter stating the loan conditions and there is a paragraph where they agree to pay for fees, including appraisal costs. So, that makes me feel better. Then, since it is outside of TRID when they withdrew, we are able to bill for the full fee?

does the letter state that they agree to pay fees even if the loan doesn't close?
If not, you've got nothing but the borrower's willingness to pay the fee to go on.
You should have a policy that addresses payment of costs on loans that do not close that covers this type of situation. The fact there are additional costs on the appraisal is just a sidebar, not the real issue.