As required, we include the attorney fee for doc prep in our origination charge. According to review staff, this has created a problem because since the fee isn't itemized (payable to attoreny) on the Settlement Statement, the settlement agent wants to cut the check directly to the bank. Is this OK? Management says "OK" and then we will pay the attorney from our end.

I know in Laser Pro, we are able to "include" fees like a doc fee and a coupon book fee in the origination charge while still itemizing them on the HUD-1. That way, they are separate fees, but still included in Block 1.

I thought (under the regulation) that the fees that make up the origination charge are NOT to be itemized. Am I wrong?

I believe the way we are doing it is correct. I'm trying to find something in the regulation i can cite for you swiggles. (As a practical matter, and not to say that Laser Pro can't be wrong, but, they have an "include in line 801" feature so that you can enter say a doc fee in line 810 or whatever it is, but include it in Block 1)....the only thing i can find quickly in the Reg is in Appendix C where it says for Block 1: "the loan orginator must state here ALL CHARGES that all loan originators involved in this transaction will receive..." I think those fees are not to be itemized on the GFE, not the HUD....

RESPA Q&A HUD-1-800 series - question 2.

Q If an attorney prepares loan documents for a lender, where does that charge go on the HUD-1?

A Loan document preparation done on behalf of the loan originator is a processing and administrative service in the origination of the loan and is included in the charge on Line 801 of th HUD-1, and may not be separately itemized.

Does this mean something different than what I'm getting from it?

We don't have an attorney perform doc. prep, but we do have an internal doc. fee on many loans.....it is "itemized" on the HUD-1, but of course the fee is included in the adjusted origination charge, so the fee shows up in the gray lefthand portion of the HUD-1, not in the portion paid by the borrower. I honestly don't know what to tell you Swiggles. I take what you quoted to mean "Line 801 on your HUD-1 needs to show all origination charges.....don't include only your 'origination fee' there", so to me we are giving the customer more information by indeed showing all origination charges (including the doc fee, coupon books, etc.) in line 801, but then showing what fees besides just the "origination fee" that made that total. Just my opinion, and i'm not entirely certain i'm right.

Thanx for your responses. We use LaserPro too and so I've asked to see a sample copy of what you're talking about.

We also include doc prep fees in Line 1 Origination Charge of the GFE and in HUD line 801, without itemization. We do reflect it separately in our Loan Origination System and can see the fee on our Itemization of Amount Financed, but it is not broken out on the HUD-1 as the FAQ instructs not to do so.

Perhaps a guru can chime in!

Regards

guru, guru, guru, guru!!!!

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If that is the case....why not just add everything up and enter it together? Why would you bother entering them separately? I'm not saying that isn't correct.....just that that doesn't make sense to me. (of course...it is HUD). Again, for whatever it's worth, i take that FAQ to mean "Line 801 must include all fees in the adjusted origination charge and not JUST your origination FEE".

Line 801 is not itemized on the HUD Settlement Statement.

Lines 804 and above are used to disclose required services you select and does not include any "origination" charges. All origination charges are totaled and entered in Line 801.

Dan, is there any reason then for the distinct fees that make up your origination charge to show up anywhere else, like the TIL, or can we just do away with calling the doc fee, the coupon book fee, etc. distinct fees?

Some of your origination charges that RESPA requires to be disclosed in Block 1 and Line 801 may not all be finance charges for the purposes of TIL. If you want to exclude those that are exempt then you would need to be able to document the fees that were excluded.

Ohhhh,,,right. Thanks.