In reviewing a HUD I find a Broker Admin fee (1/2 paid by borrower) to a real estate agency. Is it correct that this Admin fee is not a PPFC since it is an administrative fee charged by the real estate company?

Thanks for any advice. I did a search and couldn't find an exact answer. Thanks.

It doesn't matter what they call it:

226.4 (a)(3) Special rule; mortgage broker fees. Fees charged by a mortgage broker (including fees paid by the consumer directly to the broker or to the creditor for delivery to the broker) are finance charges even if the creditor does not require the consumer to use a mortgage broker and even if the creditor does not retain any portion of the charge.

It is an administrative fee that the real estate company is charging for doing their paperwork. It was disclosed as a broker admin fee payable to the real estate company. So, it is a PPFC? It is listed on line 4 under commission on the HUD. Thanks!

Yes. Unless this was a charge to the seller.

This is a fee charged by the real estate agent over and above their sales commission?? When you said broker, I was thinking a mortgage loan broker. Fees payable to the real estate agent (or company) are not finance charges as they would also be payable in a cash transaction.

I thought I had better clarify my question. Thanks your response.