Posted By: DoubleNickel
Fee assessment allowed? - 01/14/20 02:24 PM
Our bank has a Mortgage Department which sells their loans on the secondary market. They may approve permanent financing and issue all TRID early disclosures for a loan, while on the bank side, we finance the interim construction of the home. During the construction period, the consumer may decide to do their permanent financing elsewhere for whatever reason. The question has been asked to me if we are allowed to assess a fee at payoff of the interim construction loan when a consumer has decided to take their permanent loan elsewhere after initially being approved by our mortgage department and having provided ‘intent to proceed’. If we are allowed to assess this fee, how and when during the interim financing stage do we disclose this to the borrower and attain their acknowledgment of the possible fee at payoff should they decide to do their permanent financing elsewhere?
Any insight from the compliance side or Texas laws as to how this is allowable or not is greatly appreciated.
Any insight from the compliance side or Texas laws as to how this is allowable or not is greatly appreciated.