On a covered purchase loan, Liam has applied but has not yet received a Loan Estimate or told the lender that he wants to proceed. The lender wants to collect money up front. Which charge is permitted at that stage?
Correct Answer
D) A bona fide and reasonable fee to obtain Liam's credit report
Before the consumer receives the Loan Estimate and indicates an intent to proceed, TRID generally allows only one fee: a bona fide and reasonable fee for obtaining the consumer's credit report. Other application-related fees must wait until after the Loan Estimate is received and the consumer says to move forward.
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