A Washington broker obtains a written commitment in 2026 on the agreed terms and the borrower simply walks away. Assuming no broker fault and no federal prohibition, what fee cap applies after the borrower declines to close the obtained commitment?
Correct Answer
C) A fee of up to $300 for services and documents may be charged
Where the broker obtained a written commitment from a lender on the agreed terms and the borrower fails to close through no fault of the broker, the broker may charge a fee not exceeding three hundred dollars for services rendered, preparation of documents, or transfer of documents in the borrower file that the borrower prepared or paid for, if not otherwise prohibited by the Truth in Lending Act. Other choices: $1,000 exceeds the cap; this is the exception to the no-loan rule; and the usual origination charge is not the measure. Source: RCW 19.146.070(2)(a)
Why This Is the Correct Answer
Where the broker obtained a written commitment from a lender on the agreed terms and the borrower fails to close through no fault of the broker, the broker may charge a fee not exceeding three hundred dollars for services rendered, preparation of documents, or transfer of documents in the borrower file that the borrower prepared or paid for, if not otherwise prohibited by the Truth in Lending Act. Other choices: $1,000 exceeds the cap; this is the exception to the no-loan rule; and the usual origination charge is not the measure. Source: RCW 19.146.070(2)(a)
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