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#2180782 - 06/05/18 06:59 PM Higher fee on brokered construction loans
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 527
Midwest
We have a broker who refers initial (temporary financing) construction loans to us, where we do not get the end financing. Is it ok to charge a higher fee on these loans than we do on our other construction loans since we don't get the end financing? And no, we don't pay them a fee for the referrals. Thanks

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RESPA
#2180820 - 06/05/18 09:20 PM Re: Higher fee on brokered construction loans M&M
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
My opinion: interest should be tied to risk. Charge a larger upfront fee since yo won't be getting the end financing. I think that's perfectly fine.
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David Dickinson
http://www.bankerscompliance.com

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#2180871 - 06/06/18 03:05 PM Re: Higher fee on brokered construction loans M&M
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 527
Midwest
Thanks Dave. Appreciate the feedback!

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