Origination ActivitiesQuestion 204 of 400
A loan officer collects a $600 appraisal fee from the borrower one hour after issuing the LE but before the borrower says they want to move forward. This is:
a.Permitted, because the LE was already issued
b.Permitted for any third-party fee
c.A TRID violation, because fees (other than the credit-report fee) may not be collected before intent to proceed
d.Permitted if the borrower is buying a second home
Explanation
Issuing the LE is not enough; the consumer must also communicate intent to proceed before any fee other than the credit-report fee may be collected. Collecting the appraisal fee before intent to proceed violates TRID.
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Related questions on this topic
- Under TRID, who is responsible for ensuring the Loan Estimate is provided to the consumer?
- A mortgage broker receives a consumer's application. Which statement is correct about the Loan Estimate?
- Before intent to proceed, the fee a creditor charges to obtain the credit report must be:
- When a creditor permits the consumer to shop for a settlement service, the creditor must provide:
- If the creditor allows the consumer to shop for a service but fails to provide the required written list of providers, the charge for that service is generally treated under which tolerance?
- Which of the following qualifies as a 'changed circumstance' that permits a revised Loan Estimate?
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