§ 1980.22 - Charges and fees by lender.

(a) Routine charges and fees. The lender may establish the charges and fees for the loan, provided they are the same as those charged other applicants for similar types of transactions. “Similar types of transactions” means those transactions involving the same type of loan requested for which a non-guaranteed loan applicant would be assessed charges and fees.

(b) Late payment charges. Late payment charges will not be covered by the Loan Note Guarantee. Such charges may not be added to the principal and interest due under any guaranteed note. Late payment charges may be made only if:

(1) Routine. They are routinely made by the lender in all types of loan transactions.

(2) Payments received. Payment has not been received within the customary time frame allowed by the lender. The term “payment received” means that the payment in cash or by check, money order, or similar medium has been received by the lender at its main office, branch office, or other designated place of payment.

(3) Calculating charges. The lender agrees with the applicant in writing that the rate or method of calculating the late payment charges will not be changed to increase charges while the Loan Note Guarantee is in effect.