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38 C.F.R. §§ 36.4528–36.4530

3 sections in range

§36.4528. Vendee loan origination fee.

38 C.F.R. § 36.4528

(a)
In addition to the loan fee required pursuant to 38 U.S.C. 3729, if any, the Secretary may, in connection with the origination of a vendee loan, charge a borrower a loan origination fee not to exceed one-and-a-half percent of the loan amount.
(b)
All or part of such fee may be paid in cash at loan closing or all or part may be included in the loan. The Secretary will not increase the loan origination fee because the borrower chooses to include such fee in the loan amount financed.
(c)
In no event may the total fee agreed upon between the Secretary and the borrower result in an amount that will cause the loan to be designated as a high-cost mortgage as defined in 15 U.S.C. 1602(bb) and 12 CFR part 1026.
Notes, amendments, and revision history

Amendments

[82 FR 35904, Aug. 2, 2017]

Amendments

[24 FR 2658, Apr. 7, 1959]

Authority

Authority: 38 U.S.C. 501 and 3720.

Amendments

[82 FR 35904, Aug. 2, 2017]

§36.4529. Vendee loan post-origination fees.

38 C.F.R. § 36.4529

(a)
The Secretary may charge a borrower the following reasonable fees, per use, following origination, in connection with the servicing of any vendee loan:
(1)
Processing assumption fee for the transfer of legal liability of repaying the mortgage when the individual assuming the loan is approved. Such fee will not exceed $300, plus the actual cost of the credit report. If the assumption is denied, the fee will not exceed the actual cost of the credit report;
(2)
Processing subordination fee, not to exceed $350, to ensure that a modified vendee loan retains its first lien position;
(3)
Processing partial release fee, not to exceed $350, to exclude collateral from the mortgage contract once a certain amount of the mortgage loan has been paid;
(4)
Processing release of lien fee, not to exceed $15, for the release of an obligor from a mortgage loan in connection with a division of real property;
(5)
Processing payoff statement fee, not to exceed $30, for a payoff statement showing the itemized amount due to satisfy a mortgage loan as of a specific date;
(6)
Processing payment by phone fee, not to exceed $12, when a payment is made by phone and handled by a servicing representative; and
(7)
Processing payment by phone fee, not to exceed $10, when a payment is made by phone and handled through an interactive voice response system, without contacting a servicing representative.
(b)
The specific fees to be charged on each account may be negotiated between the Secretary and the borrower. The Secretary will review the maximum fees under paragraph (a) of this section bi-annually to determine that they remain reasonable.
(c)
The Secretary may charge a borrower reasonable fees established in the loan instrument, including but not limited to the following:
(1)
Property inspection fees;
(2)
Property preservation fees;
(3)
Appraisal fees;
(4)
Attorneys' fees;
(5)
Returned-check fees;
(6)
Late fees; and
(7)
Any other fee the Secretary determines reasonably necessary for the protection of the Secretary's investment.
(d)
Any fee included in the loan instrument and permitted under paragraph (c) of this section would be based on the amount customarily charged in the industry for the performance of the service in the particular area, the status of the loan, and the characteristics of the affected property.
Notes, amendments, and revision history

Amendments

[82 FR 35904, Aug. 2, 2017]

Amendments

[24 FR 2658, Apr. 7, 1959]

Authority

Authority: 38 U.S.C. 501 and 3720.

Amendments

[82 FR 35904, Aug. 2, 2017]

§36.4530. Vendee loan other fees.

38 C.F.R. § 36.4530

(a)
In addition to the fees that may be charged pursuant to §§ 36.4528 and 36.4529 and the statutory loan fee charged pursuant to 38 U.S.C. 3729, the borrower may be required to pay third-party fees for services performed in connection with a vendee loan.
(b)
Examples of the third party fees that may be charged in connection with a vendee loan include, but are not limited to:
(1)
Termite inspections;
(2)
Hazard insurance premiums;
(3)
Force-placed insurance premiums;
(4)
Courier fees;
(5)
Tax certificates; and
(6)
Recorder's fees.
Notes, amendments, and revision history

Amendments

[82 FR 35904, Aug. 2, 2017]

Amendments

[24 FR 2658, Apr. 7, 1959]

Authority

Authority: 38 U.S.C. 501 and 3720.

Amendments

[82 FR 35904, Aug. 2, 2017]