Glossary Terms

Processing Fee Clause

A section in the paperwork of a VA home loan that advises borrowers there may be a “reasonable” processing fee charged if a home buyer assumes the VA mortgage.

A section in the paperwork of a VA home loan that advises borrowers there may be a “reasonable” processing fee charged if a home buyer assumes the VA mortgage.

Processing Charge Clause:

“Upon application for approval to allow assumption of this loan, a processing fee may be charged by the loan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder’s ownership records when an approved transfer is completed.  The amount of this charge shall not exceed the maximum established by the Department of Veterans Affairs for a loan to which Section 3714 of Chapter 37, Title 38, United States Code applies.”