Escrow & Title
An Arizona 'assumption fee' charged by a lender when a buyer assumes an existing mortgage is:
AProhibited under RESPA
BA charge for the lender's administrative cost of qualifying the new borrower and updating loan records✓ Correct
CA prepayment penalty charged to the seller
DA discount point charged to reduce the assumed rate
Explanation
An assumption fee is a charge by the lender to process an assumption transaction—reviewing the assuming buyer's qualifications, updating records, and issuing the assumption agreement. It is distinct from a prepayment penalty.
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