When may licensees collect origination fees on refinanced loans?

Licensees may collect origination fees on refinanced loans only after a certain period has passed since the original loan, which is typically 24 months. This requirement is in place to ensure that refinancing serves a legitimate purpose for borrowers rather than allowing repeated charging of fees within a short timeframe without any tangible benefit to the borrower.

This rule helps to protect consumers by discouraging lenders from frequently refinancing loans to collect more fees without providing significant benefit to the borrower, such as obtaining a lower interest rate or reducing monthly payments. By stipulating a waiting period, the regulation aims to promote responsible lending practices and maintain the integrity of the mortgage loan process.