A Virginia commitment agreement in 2026 says nothing about what happens to the fee if the loan does not close. Must the agreement disclose the circumstances under which the commitment fee is refundable?
Correct Answer
C) Deficient: it states the fee is refunded only in set circumstances
The agreement must include a statement that if the loan is not closed within the commitment period the lender is no longer obligated and any commitment fee will be refunded only under the circumstances set out in the refund subsection and such other circumstances as the agreement sets out. Other choices: the statement is a required item whatever the regulation says elsewhere; the size of the fee is not relevant; and an unconditional refund is not what the rule requires. Source: 10VAC5-160-30(A)(9)
Why This Is the Correct Answer
The agreement must include a statement that if the loan is not closed within the commitment period the lender is no longer obligated and any commitment fee will be refunded only under the circumstances set out in the refund subsection and such other circumstances as the agreement sets out. Other choices: the statement is a required item whatever the regulation says elsewhere; the size of the fee is not relevant; and an unconditional refund is not what the rule requires. Source: 10VAC5-160-30(A)(9)
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