What must a mortgage loan originator do when accepting an appraisal fee from a borrower?

When a mortgage loan originator accepts an appraisal fee from a borrower, they must provide a written statement explaining when the fee is refundable. This requirement is in place to ensure transparency and protect consumers. By clarifying the terms around the appraisal fee, borrowers understand their rights and can make informed decisions regarding their financial commitments.

Providing a detailed explanation in writing about the refund process helps build trust between the borrower and the mortgage loan originator, ensuring that borrowers are fully aware of the conditions under which they can receive a refund, such as in cases when the loan does not proceed or if other specific criteria are met. This type of clear communication is essential in the mortgage industry to avoid misunderstandings and disputes over fees.