Introduction to Mortgage Origination Examinations Training

3/7/2025

Internal Use Only

Activity – Valid Not Valid • Lender provided borrower an initial Loan Estimate disclosing the appraisal fee at $500 • Property located 25 miles from the nearest city • Because of the property location, an additional “Location Fee” of $200 was added to the appraisal cost when the order was placed • Within 3 business days of the order being placed, lender provided a revised estimate disclosing the appraisal at $700

83

Internal Use Only

Activity – Valid Not Valid • Lender initially qualified borrower on a 710 credit score • The score qualified the borrower for the lender’s TOP LOAN Program which does not have a loan origination fee • Because of property repairs needed, the loan did not close as scheduled & lender re-pulled the borrower’s credit report • New credit report showed several late payments & a drop in the borrower’s credit score to 670 • Borrower no longer qualified for the TOP LOAN Program • Lender provided borrower with a revised estimate within 3 business days of credit report re-pull showing an origination fee of $1,000

84

42