In-house inspection fee

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?

Thanks!

When are you planning to charge this fee? At closing on when it happens?

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?

Thx!

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.