What a Borrower's Intent to Proceed Allows the Lender to Do

A Loan Estimate is an early disclosure, not a demand that the consumer pay every application charge immediately. TRID restricts most fees until the consumer has received the estimate and chooses to move forward.

The basic restriction

Under 12 CFR 1026.19(e)(2)(i)(A), before the consumer receives the Loan Estimate and indicates an intent to proceed, the creditor generally may not impose a fee on the consumer or another person in connection with the application. The rule has a narrow exception for a bona fide and reasonable fee for obtaining the consumer's credit report.

What counts as intent to proceed

The consumer must communicate a choice to proceed with the transaction after receiving the Loan Estimate. The creditor may establish reasonable procedures for how the consumer communicates that choice, such as a recorded oral statement or written response, consistent with the rule. Mere receipt of the Loan Estimate is not intent to proceed, and a creditor should not treat silence as acceptance.

Why the rule matters

The waiting period lets consumers review estimated terms and compare offers before paying most application-related charges. It separates the disclosure trigger from the borrower's decision to continue. A lender can request additional documentation after the consumer proceeds, but fee timing remains subject to the regulation.

Compliance checks

• Record when the Loan Estimate was delivered or placed in the mail.
• Use a compliant process to capture the consumer's affirmative intent to proceed.
• Do not collect prohibited fees before both conditions are satisfied.
• Confirm any credit-report charge is bona fide and reasonable.
• Apply additional timing rules to revised estimates and changed circumstances.

Exam takeaway

A consumer's intent to proceed, after receiving the Loan Estimate, generally unlocks collection of fees beyond the bona fide and reasonable credit-report fee. Receipt of the Loan Estimate alone is not enough.

The sequence matters

For a covered mortgage transaction, the consumer must receive the Loan Estimate and indicate intent to proceed before a creditor or other person imposes most application-related fees. A bona fide and reasonable fee for obtaining a credit report is the limited exception. The rule prevents appraisal, underwriting, or application fees from being imposed before the consumer receives the disclosure and chooses to proceed.

Intent can take different forms

The consumer may communicate intent in any manner unless the creditor requires a particular method. An in-person statement, phone call, email, or signed form can qualify if it occurs after receipt of the Loan Estimate and concerns the disclosed transaction. The creditor must document the communication. The rule does not require one universal “intent form.”

Silence is not intent

A creditor cannot send the Loan Estimate, wait without a response, and then treat silence as permission to charge an appraisal fee. Silence cannot be documented as an affirmative choice. A pre-printed notice that the lender will proceed unless the consumer objects does not turn nonresponse into intent.

Fee imposed can occur before money moves

The rule focuses on imposing a fee, not only when a payment is collected. Requiring a consumer to provide a payment method for a non-credit-report fee before the required sequence can violate the restriction, even if the creditor plans to charge later. A credit-report authorization is treated differently only when it covers the bona fide, reasonable credit-report cost.

Example: appraisal payment

The consumer receives the Loan Estimate and emails, “I want to move forward with this loan.” The creditor documents the email and may then impose a permitted appraisal fee. If the email was sent before receipt, or the consumer did not respond at all, the sequence has not been satisfied. Check the specific transaction and fee rather than using a generic timeline.

MLO workflow

Document when the Loan Estimate was delivered, which version it described, how and when the consumer responded, and which fee is being imposed. Confirm the communication relates to the same disclosed transaction. If loan terms have materially changed, ask compliance whether a new disclosure and intent are needed before proceeding.

The communication must match the disclosed transaction

An intent statement relates to the transaction described in the Loan Estimate. If the borrower later chooses a different product, property, or loan amount, do not assume an earlier response authorizes fees on the new transaction. Document the changed facts and consult compliance about any new Loan Estimate and intent step.

Credit report fee is narrow

The exception is a bona fide and reasonable fee for obtaining the consumer’s credit report. It does not permit relabeling an application, appraisal, processing, or underwriting charge as a credit-report fee. If a payment method is collected, ensure the authorization is limited to the permitted report charge until the consumer receives the Loan Estimate and affirmatively proceeds.

Additional compliance detail

A lender may set a reasonable method for recording intent, but the consumer must actually communicate after receiving the Loan Estimate. Keep the communication in the file and associate it with the estimate version. Do not backdate a response or infer intent from a signed application that predates the disclosure.