Does anyone know of any guidelines on what is considered a standard charge by the bank to originate a subordination agreement?

I guess I need to reword my question. A bank can charge any fee within reason? Does $250 to prepare and record a subordination agreement sound reasonable?

Not to me. We get subordinations through here regularly and there is never a change associated with them that I see on HUDs or as bills.

Besides that, it's a simple one page fill-in-the-blank document that's not being drafted by an attorney or anything so how do you justify charging $250 for it?

Depends on the bank. We do a worksheet, run credit, calculate D/I, review the appraisal, etc. - basically a mini-underwriting. That being said, we surveyed our competitors in each market and found only one very large bank that was charging the fee so so opted not to.

Great. That is what I was looking for. We do allot of secondary market loans as well and I have only seen other Investors charge a $35.00 recording fee.

I wanted to nip any idea in the bud of someone at our Bank getting the idea to tack on a fee that no one else is charging.

Thanks!