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#1341584 - 02/10/10 11:40 PM FHA Orig Charge Calculation
CalifDreamin Offline
Diamond Poster
CalifDreamin
Joined: Mar 2002
Posts: 2,224
Far from Calif
We have two systems calculating the FHA origination charge differently, and can't find anything that says how it's supposed to be calculated. Our Mortgage Dept. called FHA and called our investor, neither know - they said to check with HUD/RESPA... Called HUD but it just rang and rang. I don't see the answer in RESPA, the FAQs or on HUD's website anywhere. crazy

Is the FHA 1% origination charge calculated off of the base loan amount or the total loan amount that has upfront MIP rolled in? Where can we find the official document that tells us this?

Thank you!
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Lending Compliance
#1341649 - 02/11/10 01:26 PM Re: FHA Orig Charge Calculation CalifDreamin
Amos Offline
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Joined: Nov 2004
Posts: 237
USA
Are you aware of the following change?

"FHA will no longer limit the origination fee to one percent of the mortgage amount for its standard mortgage insurance programs (HECM and 203k loans retain their statutory origination caps).
However, FHA expects that lenders will continue to charge fair and reasonable fees for all origination services. We will continue to monitor and ensure that FHA borrowers are not overcharged. And it should be noted that the FHA Commissioner retains the authority to set limits of any fees that lenders charge borrowers for obtaining an FHA loan."

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#1341684 - 02/11/10 02:16 PM Re: FHA Orig Charge Calculation Amos
RolTyde Offline
Member
Joined: Nov 2008
Posts: 78
Anywhere but here
It's charged off the base loan amount. I don't have documentation to back this but half of our loans are FHA and we've always used the base amount and our investors have always agreed with us. But as Amos stated, FHA doesn't hold you to 1% anymore.

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#1341723 - 02/11/10 02:53 PM Re: FHA Orig Charge Calculation RolTyde
CalifDreamin Offline
Diamond Poster
CalifDreamin
Joined: Mar 2002
Posts: 2,224
Far from Calif
Thank you! Yes, we are aware of FHA not holding us to 1% anymore - we are just still using that. I won't be able to get our system to change how it's calculating without something official that says how it has to be done. Both systems are digging their feet in saying they are doing it right even though they are each calculating it differently. Our investor was not able to answer the question for us, unfortunately. Sent an email to FHA last night but haven't heard back yet. Would try calling them again, but I really need their answer in writing.
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