West Virginia Mortgage Law Practice Test

Which of the following fees is permissible?

1. A best efforts fee of 3%

2. An application fee of $250

3. An interest rate of 20%

4. A late payment fee of 10%

The correct answer is: A best efforts fee of 3%

A best efforts fee of 3% is permissible because it is within the industry standard and is not considered excessive. Option B is incorrect because application fees are not typically allowed by mortgage regulators. Option C is incorrect because an interest rate of 20% would be considered predatory and is not permissible. Option D is incorrect because a late payment fee of 10% would also be considered excessive and is not allowed by mortgage regulators. Therefore, option A is the only permissible fee listed.