In-house inspection fee

Posted By: beegee

In-house inspection fee - 07/20/22 07:38 PM

We are wanting to start charging an in-house inspection fee for consumer construction home loans.

We were thinking there was a compliance hurdle involved with this.

Can BOL provide any insight on what we need to consider?

Posted By: rlcarey

Re: In-house inspection fee - 07/21/22 12:47 PM

When are you planning to charge this fee? At closing on when it happens?
Posted By: beegee

Re: In-house inspection fee - 07/21/22 02:51 PM

Randy -

Would we be required to disclose at closing?

Could we charge at our discretion - for example - if the construction project is at a distance from the bank?

Posted By: rlcarey

Re: In-house inspection fee - 07/21/22 03:28 PM

What you can charge is up to you and any State law. When you charge is also up to you. You can collect a good faith estimate of these charges at closing and treat it like any other Section A fee on the LE/CD. If you collect them post-closing on a pay-as-you-go basis, then the same good faith estimate would have to be disclosed on the addendum to the LE/CD and they would have to be included in the finance charge (not prepaid) to calculate your APR.