[Kristin]

We received a check from a customer for fees incurred during processing. The HELOC was eventually withdrawn prior to closing. The fees collected were $299.00 Loan Processing Fee, $12.00 Flood Certificate Fee, $675.00 Attorney Fee and $450.00 Appraisal Fee.
Are we permitted to collect these fees or are we required to refund any/all of them?

Topic

[rcooper]

I apologize we overlooked your question last week.

I am assuming this is a rescindable transaction, in which case you must refund all fees the consumer paid to you or a third party as part of the transaction. See 1026.15(d)(2) and its commentary.

[Kristin]

No, this was actually not a rescission issue, the HELOC was withdrawn – it never closed. The LO was just able to collect the fees from the customer and we actually received a check even though the loan never closed.
We are looking at 1026.40. Can you tell us what would be a non-refundable fee? Can any fee be considered a non-refundable fee? Do we have to disclose that a fee is a non-refundable fee? Is this required to be disclosed in the HELOC application disclosure?

[Author]

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