What is the purpose of the mortgage loan originator's written statement about appraisal fees?

The mortgage loan originator's written statement about appraisal fees serves to inform clients about the conditions under which the appraisal fee may be refundable. This is important for borrowers to understand since there are circumstances—such as if the loan is not processed or the property does not meet the lender's requirements—where the appraisal fee might be returned to them. By clearly addressing the refundability of appraisal fees, the originator ensures transparency and helps clients grasp the financial implications associated with their mortgage application process.

Understanding fee refundability is crucial for borrowers as it provides them clarity on potential costs they may incur throughout the loan process and supports better financial planning. While details about the legal implications of appraisal reports, the variability of appraisal costs, and providing a comprehensive breakdown of fees associated with the mortgage are also significant considerations, they do not specifically address the conditions of fee refundability like the correct answer does.