A licensee who accepts fees from loan applicants prior to closing must refuse to accept those fees in any form other than what?

In Rhode Island, mortgage loan originators and other licensed professionals must adhere to specific regulations regarding the acceptance of fees from loan applicants prior to closing. These regulations are designed to protect consumers and ensure transparent and fair practices in the mortgage industry.

The correct option indicates that a licensee must refuse to accept fees in any form other than cash. This is important because cash payments can create a paper trail and accountability that could be lacking with other forms of payment such as checks, credit cards, or wire transfers. Accepting only cash can also help to reduce the potential for fraudulent transactions and ensure that all fees and charges are accurately documented and disclosed in compliance with state and federal laws.

In addition, accepting fees in cash may limit the opportunity for disputes that can arise with other payment methods, where chargebacks or payment reversals could complicate the transaction and lead to regulatory issues for the licensee. This adherence to cash-only transactions before closing aligns with best practices for maintaining integrity and transparency in the mortgage application process.