A compliance review finds that a borrower asks which upfront charge can be collected before intent to proceed. What should the MLO do next?
Correct Answer
D) Charge only a bona fide credit report fee before intent
Lines 186-203; 12 CFR 1026.19(e)(2)(i). The narrow fee exception is for a bona fide and reasonable credit report fee before Loan Estimate receipt and intent to proceed. Therefore, the correct response is "Charge only a bona fide credit report fee before intent".
Why This Is the Correct Answer
Lines 186-203; 12 CFR 1026.19(e)(2)(i). The narrow fee exception is for a bona fide and reasonable credit report fee before Loan Estimate receipt and intent to proceed. Therefore, the correct response is "Charge only a bona fide credit report fee before intent".
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Before closing, the team discovers that a borrower asks which upfront charge can be collected before intent to proceed. What is the safest compliant answer?
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