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#1118399 - 01/28/09 08:10 PM What is an Admin Fee? What is a Doc Prep Fee fee?
Okieboy203 Offline
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Okieboy203
Joined: Jul 2002
Posts: 68
What do you charge an Admin Fee for?

What specifically is a Doc Prep Fee for?

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Lending Compliance
#1118410 - 01/28/09 08:18 PM Re: What is an Admin Fee? What is a Doc Prep Fee fee? Okieboy203
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Simple terms, maybe someone else will get more detailed.

Admin fee - (may also be referred to as a processing fed) a fee for administering the loan process from application to closing.

Doc Prep Fee - a fee charged for the preparation of the legal documents associated with the loan. In some states this could be a problem because it is consider practicing law without a license so be sure to check your state law.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1118426 - 01/28/09 08:25 PM Re: What is an Admin Fee? What is a Doc Prep Fee fee? Dan Persfull
Okieboy203 Offline
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Okieboy203
Joined: Jul 2002
Posts: 68
Thanks Dan for the Reply. I would like to have more detail if possible.
Admin Fee- Adminstering or overseeeing the loan process from application to closing?
Could an admin fee be for, Fraud Detection Tools, cost of evaluating the mortgage application, Comparable sales report and analysis, and collecting first payments?

Document Prep fee for attorney states could be for Payments Coupon, Eomployees filling in blanks on approved mortgage forms for the closing documents and employees reviewing these forms for accuracy and the delivery of these documents.

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#1118760 - 01/29/09 01:36 AM Re: What is an Admin Fee? What is a Doc Prep Fee fee? Okieboy203
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Unless a fee is prescribed by state law, it can mean anything you want, and don't expect the name of a fee to mean the same thing to any two bankers. In order to know how to classify fees for Reg Z purposes (where there will be civil liability for errors), ignore the name of the fee and look at why it's charged and where it goes.
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#1119696 - 01/30/09 01:47 AM Re: What is an Admin Fee? What is a Doc Prep Fee fee? Richard Insley
Jan94 Offline
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Joined: Mar 2001
Posts: 828
USA
We have two fees; one is an origination fee and the other is an admin fee. For us it depends on the type of loan as to which one is charged; generally origination fees are charged on real estate loans. However I have been told that there have been instances where both fees were charged on the same loan. So we're looking at these to come up with some better definitions. We treat them both as prepaid finance charges.

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