A Virginia broker charges a $700 processing fee in 2026 while the file is still being shopped to lenders. Assuming it is broker compensation rather than an excepted documented third-party cost, may the fee be collected before a written commitment?
Correct Answer
D) Too early: compensation waits for a written commitment to lend
Except for documented costs of credit reports and appraisals, a broker may not receive compensation from a borrower until a written commitment to make a mortgage loan is given to the borrower by a mortgage lender. Other choices: work already done is the usual justification and the statute rejects it; a refund promise does not move the timing; and a signed fee agreement is a separate requirement rather than what unlocks early payment. Source: Va. Code § 6.2-1616(B)(1)
Why This Is the Correct Answer
Except for documented costs of credit reports and appraisals, a broker may not receive compensation from a borrower until a written commitment to make a mortgage loan is given to the borrower by a mortgage lender. Other choices: work already done is the usual justification and the statute rejects it; a refund promise does not move the timing; and a signed fee agreement is a separate requirement rather than what unlocks early payment. Source: Va. Code § 6.2-1616(B)(1)
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