Cancellation Fee Policy
Instruction Page
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CompanyNameYour Actual Company Name
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Cancellation Fee Policy
If a client is unable to qualify for a loan, if a client's property does not qualify for a loan, a purchase escrow is canceled due to circumstances beyond client's control, or if CompanyName is unable to provide a credit approval for a loan program that meets with the client’s prior written or verbal direction, the client shall not owe CompanyName any fee no matter how much work and time CompanyName has provided on behalf of the customer.
However, if a client cancels a loan application after CompanyName has obtained a credit approval on a loan that met with either the client’s prior written or verbal direction, then the client will be obligated to pay to CompanyName, upon demand, the following amount if client chooses to cancel the application or withdraw from the loan:
(A)$350.00, plus any third-party fees incurred on behalf of the client, if a loan package has been prepared for submission or has been submitted to the lender, but loan approval has not yet been received by CompanyName.
or
(B)One-half of one percent (.5%) of the loan amount if the loan has been approved (orally or in writing) by the lender after submission to the lender with client’s oral or written (express or implied) consent.
It is agreed that actual damages caused because of clients cancellation or withdrawal would be impractical or extremely difficult to ascertain and that the above amounts are fair liquidated damages as CompanyName's sole monetary recovery to cover administrative costs and expenses associated with the loan application.
In the event a cancellation fee is paid, the client shall have a nontransferable credit with CompanyName to be applied toward CompanyName's normal fees on a new loan for an amount equal to or more than the canceled loan. The credit will expire six months from when the loan cancellation occurred.
The above Cancellation Fee Policy has been read and agreed to by the undersigned client(s):
Borrower: ______Date:______
Co-Borrower: ______Date:______