Can a lender charge a non-refundable processing fee? How? 10 Answers as of August 28, 2015

Can a processing fee be non-refundable if the loan doesn't pass underwriting or is otherwise turned down?

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A Fresh Start
A Fresh Start | Dorothy G Bunce
As a general rule, lenders can charge whatever they want in fees unless a state law prohibits it. The reason for these fees is often because the lender must spend money on credit reports, commissions and other expenses to investigate potential borrowers.
Answer Applies to: Nevada
Replied: 7/27/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
They can ask for whatever they want. If you signed it then generally it is correct.
Answer Applies to: New York
Replied: 7/27/2015
Ronald K. Nims LLC | Ronald K. Nims
Yes, lenders can charge an "application fee" which is nonrefundable if the loan doesn't go through. Any money that you have to pay upfront is probably nonrefundable. These charges used to be automatic and every lender charged them, but with the increased competition due to the internet, they are rare today. If you contact a lender that wants an upfront fee, go to another lender. If Obama succeeds in his attempt to regulate the internet, application fees will become common again.
Answer Applies to: Ohio
Replied: 7/27/2015
S. Joseph Schramm | Joseph Schramm
Nonrefundable processing fees are valid if made one of the written terms of an application, including loan applications.
Answer Applies to: Pennsylvania
Replied: 7/27/2015
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
It all depends upon what it is that you agree to, but it certainly possible to have a nonrefundable processing fee.
Answer Applies to: Michigan
Replied: 7/27/2015
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