What is a requirement for a licensee to charge a borrower for modification services?

A licensee is required to provide a written modification offer that must be received and accepted by the borrower in order to charge for modification services. This requirement ensures that the borrower is fully aware of the terms of the modification and consents to the changes being proposed. It fosters transparency in the lending process, allowing borrowers to make informed decisions regarding their loan modifications.

In this context, having a written offer also protects both parties by documenting the terms and agreement reached. This clarity helps to avoid misunderstandings or disputes later on, as both the borrower and the licensee have a clear record of what was proposed and accepted.

While other options may seem relevant, they do not align with the specific regulatory requirement for the fee to be charged for modification services. For instance, while a borrower initiating the request or the loan being in default may impact the process, they are not definitive requirements for charging the modification service fees. Similarly, providing a written estimate is good practice but not specifically required for this particular action.