What is the only fee that may be collected prior to providing a borrower a Good Faith Estimate (GFE)?

The credit report fee is the only fee that may be collected prior to providing a borrower with a Good Faith Estimate (GFE). This is because the collection of a credit report fee is necessary to facilitate the credit check, which is an essential step in the mortgage application process. It allows the lender to assess the borrower's creditworthiness and make informed decisions regarding the loan.

Under the Real Estate Settlement Procedures Act (RESPA), lenders are allowed to collect a fee for the credit report without first providing a GFE. This is because obtaining a credit report is a preliminary requirement that underpins the entire loan application process. Other fees listed, like application fees, appraisal fees, and loan origination fees, typically cannot be charged until the borrower has received a GFE, as they relate more directly to the processing of the loan and the associated disclosures required under RESPA. This ensures that borrowers have clarity about the costs they will incur before moving forward with their mortgage application.