c. Itemized Fees and Charges (continued)

Charge

Description

Title Examination and Title Insurance

The veteran may pay a fee for title examination and title insurance, if any. 

If the lender decides that an environmental protection lien endorsement to a title policy is needed, the cost of the endorsement may be charged to the veteran.

Special Mailing Fees for Refinancing Loans

For refinancing loans only, the veteran can pay charges for Federal Express, Express Mail, or a similar service when the saved per diem interest cost to the veteran will exceed the cost of the special handling.

VA Funding Fee

Unless exempt from the fee, each veteran must pay a funding fee to VA.

Other Fees Authorized by VA

Additional fees attributable to local variances may be charged to the veteran only if specifically authorized by VA. The lender may submit a written request to the RLC for approval if the fee is:

·   normally paid by the borrower in a particular jurisdiction, and

·   considered reasonable and customary in the jurisdiction.

Whenever the charge relates to services performed by a third party, the amount paid by the borrower must be limited to the actual charge of that third party. 

Example:  If the lender obtains a credit report at a cost of $30, the lender may only charge the borrower $30 for the credit report.  The lender may not charge $35, even if it believes that a $5 handling charge is fair.