3.8.5 Borrower Fees

A. Lenders cannot pay application or due diligence fees on behalf of the Borrower, or other payments as an inducement. To do so would be considered a kick-back and a basis for enforcement action. This broad prohibition applies to affiliates of either the Lender or the Borrower and includes any payment or contribution from the Lender directly to the Borrower or in support of their Borrower’s interests. Other than to pay for CNA costs, existing RfR deposits (for HUD held or FHA insured mortgages) are not available for application fees or other transaction costs.