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#305565 - 01/19/05 09:25 PM App fee for mtg and disclosure of appraisal/credit
corkygirl Offline
Power Poster
Joined: Sep 2004
Posts: 4,241
middle of the country
I think I have this straight in my mind but want to make sure. I have a new Sr Lender in the mortgage department that wants to charge an application fee on every mortgage application. This fee would cover, at minimum, the appraisal fee and the credit report fee. My question is two-fold:

On the Good Faith
We would disclose the applicaton fee
We would disclose the standard appraisal fee and the standard credit report fee as "POC"

On the HUD or HUD1A :
We would not include the appraisal fee or credit report fee since we are not actually charging the customer

Correct?
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#305566 - 01/19/05 10:02 PM Re: App fee for mtg and disclosure of appraisal/credit
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
You would still have to disclose the fees as POC. To whom the fee is paid must be shown on the HUD for any fee, or portion thereof, paid to the lender and not retained by the lender.

I'm not sure exactly which question it is, but your question is answered in the attachments to the following document:

HUDs Response to the MBA
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The opinions expressed are mine and they are not to be taken as legal advice.

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#305567 - 01/19/05 10:51 PM Re: App fee for mtg and disclosure of appraisal/credit
corkygirl Offline
Power Poster
Joined: Sep 2004
Posts: 4,241
middle of the country
Thanks Dan. The GF I was comfortable with but the HUD was something I kept changing my mind on. Disclosing the fees as POC was my first response, I should learn to rely on that more I guess.
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