We have a loan that was originally going to go FNMA and it had to be converted to an in-house loan at a rate lower than what we would normally agree to. We collected Adverse Market Delivery Fee and a Loan Level Pricing Adjustment from the customer and these fees are paid to FNMA. Can we keep these fees since they were fully disclosed or must we refund the customer?

My opinion is that we should probably refund the customer but if anyone has any citations that they can share off the top of their heads whilst I scour the regs myself...that would be most appreciated.

§ 1024.14 Prohibition against kickbacks and unearned fees.

(c) No split of charges except for actual services performed. No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed. A charge by a person for which no or nominal services are performed or for which duplicative fees are charged is an unearned fee and violates this section.

Awesome! thanks you for your prompt response and the citation as well.

Bec.....you look amazingly like Aaron Rodgers!!

Its uncanny isn't it?????!!!!!

Funny thing, since the question was already answered I was JUST going to reply about the pic as well!! LOVE IT!!

Not gonna lie, love this guy!!!!