Our mortgage person wants to be able to charge a "Deposit Fee" after the 3 days have passed from the delivery of the early TIL and this fee is not disclosed on the GFE. He shows it on the HUD as Deposit Fee on line 204 as "Deposit with Lender from Bank XYZ" Does not show as POC on the HUD but acts as a credit to the borrower. Can he do this and not show on GFE and shouldn't the HUD have as POC? With all the changes I am getting very confused and of course the question would come today on the 30th.

What is the 'deposit" for?? What happens to it if the applicant doesn't go through with the loan or doesn't qualify?

Thank you for answering. The "deposit" fee is applied as a credit to the borrower for what they need to pay. Really after talking to the mtg guy it is for the appraisal and some of the processing fee and the flood search so he says. If the loan does not close and the above have not be ordered it is returned to them if ordered funds kept and applied to the above items in the accounting side (gl).

This sounds like what we do at our bank but we don't call it a "deposit fee". If the loan is denied or even if they withdraw, we would give them back any part of it that wasn't spent yet (ie the appraisal had not been ordered yet, etc). It's really not a fee if you are crediting the money to closing costs. We collect $500.00 at application (or now, upon delivery of the preliminary disclosures). We apply this money to closing costs so we show this on the GFE (and HUD-1) as our application fee (POC) and appraisal fee (POC). In some of our branches, it does not cover the whole appraisal cost so we show the application fee (POC) and the portion of the appraisal cost that it covers (POC) with the remainder due at closing with the rest of the closing costs.

I would agree that it needs to be on GFE and HUD which is where I am having a problem as he does not show on the GFE at all and on the HUD as Deposit fee and nothing is shown as POC. Thank you for your help any and all is appreciated in this matter. I would agree 100% this fee is truly an application fee and you can put any spin you want on it but it comes back down to an application fee. Am I crazy as I will be the first to admit with all the stuff going on I am starting to lose it.

When I used to do mortages and collected the appraisl fee and credit report fee up front, I disclosed it on the GFE, then the actual fees on the HUD with any credit due borrower as a credit towards the total.

You're not the only one going crazy. I've only been doing this job for 9 months and I'm already starting to lose it Good Luck!