Posted By: ComplianceNerd
Collecting Fees Prior to GFE - 01/24/12 08:35 PM
What fees are ok to collect prior to the GFE being given to the customer?
Posted By: Truffle Royale
Re: Collecting Fees Prior to GFE - 01/24/12 08:38 PM
ONLY the fee for the credit bureau report.
Absolutely NOTHING else!
RESPA is very clear about this.
Posted By: ComplianceNerd
Re: Collecting Fees Prior to GFE - 01/24/12 09:01 PM
That's what I was thinking... Thanks!
Posted By: RulesFollower
Re: Collecting Fees Prior to GFE - 01/24/12 09:22 PM
You do not only have to issue the GFE but receive the customer's intent to proceed before you can collect money or income/deposit info per RESPA
Posted By: RulesFollower
Re: Collecting Fees Prior to GFE - 01/24/12 09:22 PM
...except for the credit report as noted by TR
Posted By: mac444
Re: Collecting Fees Prior to GFE - 02/01/12 10:34 PM
If a fee was collected prior to issuing the GFE, what is the penalty/restitution?
Posted By: rlcarey
Re: Collecting Fees Prior to GFE - 02/01/12 11:43 PM
In the GFE Section of RESPA
Violations of section 5 of RESPA (12 U.S.C. 2604).
A loan originator that violates the requirements of this section
shall be deemed to have violated section 5 of RESPA.
There are no specific penalties outlined in RESPA for a Section 5 violation, so you are at the whim of your regulator.