CFPB TRID Sec. 13.6 - What does it mean to impose a fee?

Compliance > Regulation Z - TILA / TRID Specific > General Info
Q:  What does it mean to impose a fee?
 
A:  A fee is imposed by a person if the person requires a consumer to provide a method for payment, even if the payment is not made at that time. (Comment 19(e)(2)(i)(A)-5)
 
This would include, for example:
  • A creditor or mortgage broker requiring the consumer to provide a check to pay for a processing fee before the consumer receives the Loan Estimate, even if the check is not to be cashed until after the Loan Estimate is received and the consumer has indicated an intent to proceed.
  • A creditor or mortgage broker requiring the consumer to provide a credit card number for a processing fee before the consumer receives the Loan Estimate, even if the credit card will not be charged until after the Loan Estimate is received and the consumer has indicated an intent to proceed.
Note:  As discussed above (in the Bureau’s compliance guide), a creditor or other person may impose a bona fide and reasonable fee before the consumer receives the Loan Estimate, if the fee is for purchasing a credit report on the consumer. (§ 1026.19(e)(2)(i)(B))
 
 
This information can be found in the CFPB's TILA-RESPA Integrated Disclosure rule compliance guide - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 
 

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