Can lenders charge fees or preparing documents that are required by law?

Can lenders charge fees or preparing documents that are required by law?

• A. Yes
• B. No
• C. Only for certain programs
• D. If the borrower waives

Answer: (B)

Fees for items the law requires lenders to provide or prepare cannot be charged to the borrower. When a document or disclosure is mandated by law, the lender has a regulatory obligation to supply it as part of the loan process, and charging an extra fee for that preparation would be inappropriate. Only fees for services that are optional or not mandated by law are permissible—fees tied to required legal documents must be considered part of the regulated process and are not billed to the borrower as a separate charge. So, the best answer is that lenders may not charge for preparing documents that the law requires.

Fees for items the law requires lenders to provide or prepare cannot be charged to the borrower. When a document or disclosure is mandated by law, the lender has a regulatory obligation to supply it as part of the loan process, and charging an extra fee for that preparation would be inappropriate. Only fees for services that are optional or not mandated by law are permissible—fees tied to required legal documents must be considered part of the regulated process and are not billed to the borrower as a separate charge. So, the best answer is that lenders may not charge for preparing documents that the law requires.