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#1119251 - 01/29/09 06:28 PM APR? About to close!
Sage Offline
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Joined: Aug 2005
Posts: 914
A loan officer just called on his way to a closing. He looked at the HUD and saw that the realtor has added 2 fees: a "doc prep fee" and an fee to store the transaction file electronically. The realtor says this was in an addendum to the realtor's contract. Should these fees go in the APR?

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#1119262 - 01/29/09 06:44 PM Re: APR? About to close! Sage
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Doc prep fees are exempt if bona fide and reasonable.

The other fee you are talking about it nothing but a junk fee by the Realtor. We have a Realtor here CENTURY 21 that charges the same fee. We do not treat the fee as a finance charge because they charge the "document storage" fee regardless if the buyer is financing or paying cash.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1119273 - 01/29/09 06:54 PM Re: APR? About to close! Dan Persfull
Sage Offline
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Joined: Aug 2005
Posts: 914
Am I way off: I do not think $100 is reasonable to prepare the sales contract. It is a preprinted form! But I may be out of touch- people today pay for water and over $3 for coffee ...

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#1119287 - 01/29/09 07:05 PM Re: APR? About to close! Sage
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
What would be bona fide would be the cost associated with preparing the documents and what would be reasonable would be the "going" rate in your market area.

If they charge the fee to prepare the sales contract for both a cash sales and a financing sale then it could be exempted under the comparable cash transaction exemption.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1119881 - 01/30/09 03:12 PM Re: APR? About to close! Dan Persfull
Sage Offline
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Joined: Aug 2005
Posts: 914
Here's what happened: the realtor waived these fees when we told her we would have to postpone the closing to update the documents.

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