I was recently refused a refinance because of a structural engineering report for which I had to pay. The mortgage company told me they would not refund my $481 application fee, because it was used for the appraisal. Can they do this? I read a thread on BOL that said that they should refund the money based on Paragraph 23(d)(2). Not sure from what this was cited. Can you tell me, so I can bring it to the attention of the mortgage company?
There are two scenarios here. One is that you were denied a loan request. You paid fees up front and normally it would have been disclosed to you that these fees would not be refunded if you were denied.
The "Paragraph 23(d)(2)" is referring to banking Regulation Z and the rules of rescission. Had your loan been approved and you rescinded the loan, the lender would have been forced to refund fees to you. In this case you didn't rescind and the fee is nonrefundable.
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There are two scenarios here. One is that you were denied a loan request. You paid fees up front and normally it would have been disclosed to you that these fees would not be refunded if you were denied.