Skip to content

Credit Report & Flood Determination Fees

Answered by: 

We want to start charging our customers for credit reports and flood determinations. Is it ok to only charge customers that we actually close the loan with or would this be discriminatory? We don't want to charge the credit report fee at application. We would rather wait until the loan is closed before the fee is imposed on the customer, therefore if a denial is made, the denied customers would not have the fee imposed on them.

To be considered discriminatory per Reg. B and/or the Fair Housing Act, one or more of the prohibited factors would need to used in the decision to charge or waive. However, if you charge only those customers who have loans that are originated, the credit report charges must be considered a prepaid finance charge. You will find this in the Official Staff Commentary 4(c) Charges excluded from the finance charge. "...if the fee is to be excluded from the finance charge under Section 226.4(c)(1), it must be charged to all applicants, not just to applicants who are approved or who actually receive credit."

First published on 9/07/09

First published on 09/07/2009

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics