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#2273152 - 07/20/22 07:38 PM In-house inspection fee
beegee Offline
Diamond Poster
Joined: Feb 2004
Posts: 1,098
South
We are wanting to start charging an in-house inspection fee for consumer construction home loans.

We were thinking there was a compliance hurdle involved with this.

Can BOL provide any insight on what we need to consider?

Thanks!

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Lending Compliance
#2273172 - 07/21/22 12:47 PM Re: In-house inspection fee beegee
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,663
Galveston, TX
When are you planning to charge this fee? At closing on when it happens?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2273201 - 07/21/22 02:51 PM Re: In-house inspection fee rlcarey
beegee Offline
Diamond Poster
Joined: Feb 2004
Posts: 1,098
South
Randy -

Would we be required to disclose at closing?

Could we charge at our discretion - for example - if the construction project is at a distance from the bank?

Thx!

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#2273205 - 07/21/22 03:28 PM Re: In-house inspection fee beegee
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,663
Galveston, TX
What you can charge is up to you and any State law. When you charge is also up to you. You can collect a good faith estimate of these charges at closing and treat it like any other Section A fee on the LE/CD. If you collect them post-closing on a pay-as-you-go basis, then the same good faith estimate would have to be disclosed on the addendum to the LE/CD and they would have to be included in the finance charge (not prepaid) to calculate your APR.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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