At what stage can a licensee begin charging a borrower for modification services?

The correct choice indicates that a licensee can begin charging a borrower for modification services once a written modification offer is received and accepted by the borrower. This aligns with ethical practices and regulatory compliance in lending, which emphasize transparency and the borrower’s informed consent.

Charging for services before the borrower has formally accepted the modification offer could lead to misunderstandings or dissatisfaction, as the borrower has not yet agreed to the terms. By ensuring that compensation for modification services only occurs after the borrower has accepted the written offer, the process allows for clear communication and protects the borrower from unexpected costs. This practice is also consistent with protecting consumers from potential unfair lending practices.

Understanding this timing is crucial for both borrowers, who need to be fully aware of their financial commitments, and lenders, who must adhere to legal and ethical standards in their service offerings.