[Mary Frances]

Just watched the recording from Nov. 13th-14th session.

Need clarification on page 4 of the materials for Fees Imposed by a Person-Positive Example.

I understand that if we get a borrower’s credit card number we can only collect the credit report fee prior to providing the borrower with the loan estimate and getting their intent to proceed. Once the borrower has received the loan estimate and the bank has received the borrower’s intent to proceed then we can collect other fees such as processing fee or appraisal fee. In order to use the borrower’s credit card number that was provider earlier what separate authorization do we need to get? Do we need a authorization form signed?

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[rcooper]

As long as you obtain a separate authorization from that obtained for the credit report fee (after the LE has be received by the consumer and the consumer has indicated their intent to proceed) and it is clearly documented, the authorization can be either verbal or written.

From the preamble of the Intergrated Disclosure Ruels, page 305-306: The Bureau believes that the term “separate authorization,” as used in the comment, clearly means a new authorization, whether verbal or written, from the consumer for the creditor to charge new fees. The Bureau believes that an expression of a consumer’s intent to proceed with a transaction is not the same as an authorization to the creditor to charge additional fees.

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