When you have a fee such as a settlement fee and the fee is split 50/50 does full amount of the fee go outside the column,with actaul charges flowing to the correct column?

For example a $300 settlement fee; borrower pays $150, seller pays $150. On line 1102 inside the gray box it says $300, in the borrowers column it says $150 and the sellers column says $150. Am I right?

You will put the entire fee to the left IF there is an additional 3rd party settlement agent. If the same agent did the title work, the entire amount should show in 1101. Any portion the seller pays should be reflected as a credit in the 200's and a charge in the 500's.

I think my problem is sorta like this. We have a situation where the GFE shows only the borrower portion of the attorney's fees. The sttorney prepared the HUD & is showing the entire amount (buyer & seller) of attorney's fees on the buyer side. This is causing a huge increase in the tolerance. According to the attorney, they have to show it this way & show a credit on the first page of the HUD. Is this correct? I think they should show the buyer portion on the buyer side & the seller portion on the seller side. If the way the attorney did it is correct, do we still re-disclose because of the increase or is it okay because of the credit?

First off, you cannot redisclose because a fee went up. Don't know why the attorney is showing the entire amount on the buyer's side UNLESS the seller is giving a conscession as per the OTP. If the seller's portion is to draft the deed, there's no way that should be showing on the buyer's side. That was a seller's cost from the beginning and would never be on the GFE.

How is the same attorney charging both the buyer and seller attorney fees? The attorney fees should be charged to the bank for the services provided for loan closing. If the buyer and seller want an attorney to represent thier interests, it is outside of the loan closing (GFE)charges. The same attorney representing both the buyer and seller is a direct conflict of interest.

Sorry, I'm new to the compliance world (only 3 months) & am still learning. If we can't redisclose, what do we do in situations when the tolerance is over the 10%? And I agree that the seller's cost should be on their side. The attorney says we're incorrect!

You cannot redisclose unless you have a valid changed circumstance. Fees increasing is definitely NOT a valid changed circumstance. That's why cures exist.

First we need to know what the attorney is charging for. As Randy said, you may have a conflict of interest going on here. Or he may be wrong. We can't help you more till you give us more information as to what he's trying to lump together and why.

Sorry, I remembered the changed circumstance rule after I asked that question!

The fees are for the prepartion of the documents (deed & HUD) as well as a closing fee. After looking at the HUD the branch sent me, the attorney didn't even break the fees out, it's a lump sum on the borrower's side.

I have a beakdown of the fees. The seller is paying $200 for preliminary title work & $75 for the preparation of the deed. The rest of the fees are for closing, final title work, recording fees, & mailing fees. I remember seeing a FAQ that said something about all the fees for closing should be shown on the borrower side with a credit in the 500 series. Maybe the attorney is considering the preliminary title work & deed preparation as part of the closing fee, but it's not.

Is the attorney preparing the HUD at your request/direction or is he doing it for the seller? If it's for the seller, the deed and HUD costs go on the seller's side.

At the very least, the deed prep needs to be split out and shown on the seller's side which will most likely bring you back in tolerance.

I'm willing to bet you're not even working with the attorney on this but rather his secretary is telling you it has to be this way. Ask what FAQ he's using as his basis for putting it all on the buyer's side.

One other question: Is this attorney on your provider list? If not, you don't have to worry about tolerances at all.

We posted at the same time. oops.

I agree that the $75 deed prep does not go on the buyers' side. Period.

But what are you calling preliminary title work? The cost of title insurance should have been on the GFE as a buyers cost in Block 4 with the owners title cost in Block 5. Recording fees go in Block 7. Sounds like your attorney is lumping too many things together. Did your GFE break these out right?

FWIW I am not going to rehash what Randy and Truff have said, but you have received accurate guidance so far.

Thank You all!!

Another FWIW, whenever an attorney starts telling you "You have to do it this way" or "That you are incorrect", it never hurts to respectfully ask them to quote chapter and verse for their opinion.