West Virginia Mortgage Law Practice Test

In West Virginia, all of the following fees are permissible in conjunction with a loan origination except:

1. Appraisal fee

2. Credit report fee

3. Inspection fee

4. Title search fee

The correct answer is: Appraisal fee

The correct answer highlights that in West Virginia, appraisal fees are not considered permissible in conjunction with a loan origination under specific regulations regarding acceptable fees. The rationale behind this is that appraisal fees do not directly pertain to the loan origination process itself, but rather relate more to the property's valuation, which is often a subsequent step after the loan origination. On the other hand, credit report fees, inspection fees, and title search fees are generally deemed permissible because they are integral to evaluating the creditworthiness of the borrower, ensuring the property is in satisfactory condition, and verifying ownership of the property, respectively. These fees are essential parts of the loan origination process and contribute directly to the lender’s assessment of risk and property legitimacy.