Compliance – Lender Credit Incentives: Is it okay for a lender to offer a $500 credit to borrower, and/or also pay for appraisal?

Answer: A lender can pay for borrower’s closing costs/prepaids, and an appraisal would be considered a closing cost. The issue is not whether a lender can do this, it is whether or not it results in varying treatment of your clients. During an audit, regulatory bodies such as the CFPB will look to see if you [...]