What type of fees may mortgage loan originators collect before securing a conditional loan commitment?

Mortgage loan originators are not permitted to collect any fees before securing a conditional loan commitment. This regulation is in place to protect consumers and ensure that they are not charged upfront fees without a commitment from the lender. By prohibiting the collection of fees at this stage, the law aims to foster transparency and fairness in lending practices, allowing borrowers to feel secure that they will only incur costs once there is a serious commitment from the lender to process their loan application. This approach helps to avoid potential issues where borrowers might otherwise pay fees without any guarantees of loan approval.