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#2188571 - 08/09/18 06:03 PM MN mortgage taxes and conservation fee
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,400
Not a state we lend in often.
Where do these fees go on the CD?
Am being told to lump them in with the recording fee.
Is this correct?
Not paid to same entities and my HUD recollection has them broken out.

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#2188576 - 08/09/18 06:10 PM Re: MN mortgage taxes and conservation fee Truffle Royale
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,393
Galveston, TX
Don't quote me, but it appears that the Mortgage Registry Tax is based on the loan amount, so it is a transfer tax for LE and CD purposes. If I am referring to the same tax as you are.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2188583 - 08/09/18 06:20 PM Re: MN mortgage taxes and conservation fee Truffle Royale
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,400
So wouldn't be lumped in because they're not being paid to the same entity AND one is recording fees and the other is taxes.
Thank you. Nice to have confirmation of my thought process.

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#2188655 - 08/09/18 09:35 PM Re: MN mortgage taxes and conservation fee Truffle Royale
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,400
In case anyone else comes looking for the same answer, the legal counsel gentleman at MN Bankers Association confirmed that the conservation FEE is covered under 37(g)(1) and should be included in the recording fee as payable to the Recorder.
However, the mortgage tax is, as Randy suggested, more of a transfer tax and is payable to a Treasurer's office and must be shown as a separate line item.

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#2188656 - 08/09/18 09:43 PM Re: MN mortgage taxes and conservation fee Truffle Royale
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,393
Galveston, TX
They have good legal counsel. Any flat government fee - like the $5 conservation fee would be a line 1 item and lumped in to recording fees on the LE and it would be an other fee which is not itemized on Line 1 of the CD, just included in the totals.

Any fee that is based on the loan amount or sales price is a transfer tax on the LE. If there are multiple transfer taxes they are lumped on the LE and itemized on the CD.

Recording fee are subject to the 10% aggregate tolerance, however, transfer taxes are 0%.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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