5 Del. Admin. Code § 2203-5.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 2203-5.0 - Charges for Real Estate Secured Credit

In addition to the charges allowed under §§ 3.0 and 4.0 of this regulation, a licensee may collect the following charges for credit secured by residential real estate. For each separately identified charge paid to a third party, the name of the party ultimately receiving the payment must be disclosed together with the total amount paid to that party. Average charges for fees paid to third parties are permissible provided they are calculated in accordance with the Federal Real Estate Settlement Procedures Act, as amended, and the regulations thereunder.

5.1 Rate Lock Fee: The fee for the commitment of a specific interest rate to be held for a specified period of time.

5.2 Origination Charge: All fees, other than points, received as compensation for loan origination services. All loan origination charges, including but not limited to, processing, application, administration, underwriting, document preparation, wire, lender inspection, mortgage broker fees, and fees for loan handling, shall be included in the origination charge.

5.3 Points: The fee charged or credit received for the specific interest rate chosen.

5.4 Appraisal Fee: The fee charged for a written report as to the value of the security tendered.

5.5 Credit Report Fee: The fee charged for all credit reports obtained from credit reporting agencies.

5.6 Tax Service Fee: The fee charged for certification of the current tax status of the security tendered, and for life-of-loan monitoring of tax and improvement lien payments as they become due.

5.7 Flood Certification Fee: The fee paid for determining whether the security tendered is or will be located in a special flood hazard area. The fee may also include the cost of life-of-loan monitoring.

5.8 Funding Fee: The fee charged by a governmental agency to originate and guarantee a mortgage loan.

5.9 Odd Days Interest: The interest that accrues on the principal balance of the loan between the date of settlement or disbursement and the date of the first loan payment.

5.10 Mortgage Insurance Premium: The premium due at settlement for mortgage insurance to protect the lender or investor from losses due to future default of the mortgage loan.

5.11 Homeowner's Insurance Premium: The premium due at settlement for homeowner's hazard insurance, exclusive of amounts collected in escrow reserves.

5.12 Credit Related Insurance Premium: The premium due at settlement for credit life, health or disability insurance. All such insurance must be elective, and all such premiums are subject to the limitations contained in Title 18 of the Delaware Code and applicable Insurance Commissioner Regulations.

5.13 Escrow Reserves: The amounts collected for reserves, including but not limited to, homeowner's insurance, mortgage insurance and property taxes. Escrow item calculations and cushions shall be subject to the limitations specified in the United States Real Estate Settlement Procedures Act, as amended, and the regulations thereunder.

5.14 Title Insurance Premium and Title Services Fees: The premium for lender's title insurance and related endorsements. At the request of the borrower, such amount may include owner's title insurance and related endorsements in addition to lender's coverage. The fees for title services include the cost of the title commitment, certificate, search, examination, binder and direct compensation paid to the agent and the underwriter.

5.15 Attorneys Fee: The legal fees paid to an attorney who is not an employee of the licensee, its parent entity, or other affiliate, for services to secure or close the loan. The services may include the preparation of deeds, mortgages, notes and other services rendered to the borrower as part of the transaction.

5.16 Government Transfer Taxes and Recording Fees: The taxes and fees paid to local and state governments for the transfer of real estate and for the recording of documents associated with the transaction.

5.17 Property Survey Fee: The fee to obtain a drawing that delineates the exact boundaries of the security tendered, including lot lines and placement of improvements on the property.

5.18 Inspection Fees: The fee for a written report as to the physical condition of the security tendered, including but not limited to, pest inspections, lead-based paint inspections, radon inspections, structural inspections and inspections of heating, plumbing or electrical equipment. Inspection fees may include fees for insurance or warranty coverage, provided such insurance or coverage is itemized separately.

5.19 Prepayment Charges: The fee imposed in connection with the payoff and termination of a revolving credit plan or closed end loan.

5.20 Incidental Closing Fees: The fee for any other necessary and appropriate settlement service such as an assumption fee. Such fee must be actually incurred and specifically identified and itemized.

5 Del. Admin. Code § 2203-5.0

17 DE Reg. 994 (4/1/2014) (Final)