True or False: The lender must wait until the borrower expresses intent to proceed before requiring an application fee.

The reason the answer is true is that regulations stipulate that lenders cannot require borrowers to pay an application fee until the borrower has expressed a clear intent to proceed with the loan process. This intent is typically demonstrated by the borrower formally applying for the loan. Allowing this ensures that borrowers have the opportunity to understand the terms and details of the loan before committing any funds. It protects consumers from being charged fees prematurely, giving them the ability to explore their options fully before incurring expenses associated with the loan application. This rule is fundamental in promoting transparency and fairness in the lending process.