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Topic 6. What Happens to Fees and Charges If the Loan Never Closes
November 8, 2010, Change 15
This section has been updated to make minor grammatical edits.
a. Itemized Fees and Charges
The borrower’s out-of-pocket expenses for itemized fees and charges already incurred, such as the appraisal and credit report, do not get refunded.
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b. The One Percent Flat Fee
If the lender has already collected the one percent flat fee from the borrower, the lender must refund the fee. This applies to a loan that does not close for any reason, including the borrower going to another lender.