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#45526 - 11/25/02 10:59 PM Unearned fees
Ninky Offline
Gold Star
Joined: Nov 2002
Posts: 357
Unused inspection fees on interim loans are refunded, but is there a Reg that covers this? Aside from being good business and accounting practices, is this covered by a Reg?

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Lending Compliance
#45527 - 11/26/02 10:42 AM Re: Unearned fees
Richard Insley Online
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,056
Toano, VA
RESPA prohibits unearned fees in a covered transaction. Also, you should check state law.
...gone fishing.

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#45528 - 11/29/02 05:36 PM Re: Unearned fees
Lucy Griffin Offline

Diamond Poster
Lucy Griffin
Joined: Nov 2000
Posts: 1,544
As Richard points out, RESPA would be the authority on this with its prohibition of unearned fees. Hopefully, you disclosed all fees in the TIL. The fact that some were unused does not change the APR and finance charge calculations since those were accurate as of the time the loan was made. So it should be a simple refund transaction.

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