NSF Fee

We allow for borrowers to pay for the appraisal fee through ACH outside of closing. On a rare occasion, someone completes the form incorrectly so we will get a return. There is a fee we are assessed for the return. Is this something we can pass on to the borrower? If so, do we need to do a COC to include the fee. We have considered this the cost of doing business and have not charged it before, but management is now considering if we should charge folks. Just trying to think it through....

If you are going to charge it to the borrower - then yes. Seems like more trouble than it is worth. Not sure how much the fee might be, but what does it cost you to re-issue disclosures and is it worth it. It probably costs you $20-30 to issue disclosures and every time you issue disclosures you risk another mess up.

Thanks - that is what I was thinking, that it is not worth it because we would have to do a COC. It is only a $25 fee. Thank you again!