[Anonymous]

We currently charge a payoff quote fee which is titled the same way. My first question is, can we charge a fee for a payoff quote? If we can, (I still need to check my State regulations) where should it be disclosed? I was thinking in the note under Other Terms and Conditions. I know some banks charge a delivery fee to fax or overnight the payoff statement. Would that have to be disclosed? Please provide citations for support. Thanks.

[rcooper]

There are currently requirements for payoff statements under 1026.36(c)(3) that apply to closed-end consumer transactions secured by the consumer’s principal dwelling. Effective 1-10-13 these provisions are revised under 1026.36(c)(1)(iii). Additionally effective 1-10-13, there are requirements under the High Cost Mortgage rules in 1026.34(a)(9)(i)-(v). This section details what fees are prohibited and permitted and when the payoff must be provided.
And you are correct, that in order to charge this fee is should be detailed in your note. Other Terms and Conditions seems like a reasonable place or if there is a section for “fees”; however, this is your contract and your forms vendor or attorney can be of more assistance with this. Check your state law to ensure a payoff fee isn’t prohibited.
1026.34(a)(9): https://www.ecfr.gov/cgi-bin/text-idx?SID=2a369a4c5efae1204c8c741463eceada&node=20130131y1.11
1026.36: https://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=2a369a4c5efae1204c8c741463eceada&rgn=div8&view=text&node=12:8.0.2.9.18.5.1.7&idno=12

[newbee05]

Is it possible for a loan originated prior to 1/10/14 to have not been considered high-cost at the time of origination, but subsequent to the 1/10/14 effective date to then become a High Cost Mortgage making it then subject to the servicing provisions in 1026.34?

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