What is required before a lender can charge overnight delivery fees?

Before a lender can charge overnight delivery fees, it is essential that the service type is authorized in writing. This requirement safeguards the borrower’s interests by ensuring they are explicitly informed and have consented to the specific service being charged. Written authorization creates a clear record of the agreement between the borrower and the lender regarding the additional fee for expedited delivery, ensuring transparency and accountability in the lending process.

The necessity for written authorization prevents misunderstandings about fees and services, promoting fair practices in the mortgage lending industry. This regulation aims to protect consumers from unauthorized charges and surprises, allowing them to make informed decisions regarding the services they are willing to pay for throughout the mortgage application process.