Does anyone use a loan processing agreement? I have such a document, and I am wondering if it is a common document to use in conjunction with the lending area. It basically that states that the lender may undertake to advance certain costs, fees and expenses associated with a request for an extension of credit from the Lender.


It also states that to the extent the law allows, we may not provide "any document, article or other writing obtained by us as part of the request for the loan until the earlier of a. the closing of the loan, b. the payment of any fee incurred by us to obtain the record, or c. the time specfied by the applicable law for providing the record.” Does anyone have any comments or insight about a document like this?

Is this a document between two departments (loan operations and lending) within the same financial institution?

This is a document that is signed by the applicant agreeing to pay any applicable fees regardless if the loan goes through or not.

Also, for those banks that have a process in place similar to this, how do you attempt to collect applicable fees if the customer doesn't pay?