Rule on Charging Fee Greater than Credit Report

Answered by:

Question:

Can a bank charge a fee that is more than the cost for a credit report?

Answer:

What are you doing to earn the mark up? Mark ups are frowned upon by HUD and unless you can demonstrate (other than a LO looking at it) that you are doing something to earn the fee it would be advisable not to mark it up. Any fee you charge above the actual cost of the report would be a finance charge.

First published on BankersOnline.com 12/5/11