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#2225014 - 11/01/19 07:43 PM Recording fees increase 1-1-20
elebra Offline
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Joined: Apr 2009
Posts: 106
All court clerks will have a new fee schedule beginning 1-1-20. My question pertains to the mortgage release fee. We have collected a $13 release fee on all loans currently on the books. For every one of those loans that payoff after Jan 1, we will have to pay $46 to the clerk to release the mtg. Can we add $33 to loans on the books to collect the shortage?

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#2225020 - 11/01/19 08:04 PM Re: Recording fees increase 1-1-20 elebra
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,358
Galveston, TX
Is it outlined in your mortgage loan agreements that the borrower will be responsible for any additional costs? Also, I assume that these funds are held in a segregated escrow account for this purpose and that the lien release charge at origination is not taken into income - otherwise, I hope you are treating the release fees as a prepaid finance charge. The reconciliation of these sorts of accounts usually is more trouble than it is worth.
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#2225043 - 11/04/19 02:38 PM Re: Recording fees increase 1-1-20 elebra
elebra Offline
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Joined: Apr 2009
Posts: 106
Yes, the mortgage addresses additional fees. Yes, funds are kept in separate GL account.

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#2225048 - 11/04/19 03:41 PM Re: Recording fees increase 1-1-20 elebra
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,358
Galveston, TX
Then I am confused as to what the question might be?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2225495 - 11/12/19 09:48 PM Re: Recording fees increase 1-1-20 elebra
Live 2 Comply Offline
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Live 2 Comply
Joined: Sep 2009
Posts: 331
To piggyback off of elbra's question....even if it is in our mortgage loan agreement that the borrower will be responsible for additional costs, will we need to notify all of our current mortgage customers in Kentucky that this fee will be increasing? I was told we need to do that, but questioning if this is best practice or a requirement.

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#2225643 - 11/14/19 06:37 PM Re: Recording fees increase 1-1-20 Live 2 Comply
tuma Offline
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Joined: Feb 2003
Posts: 368
Here & There
Questioning here, too.
Most standard 'form' mortgages that I have seen appear to be silent on this. We don't collect in advance; but at the time of payoff. A release fee is disclosed or listed at loan origination. We intend to have an attorney look at our documents. But any thoughts or suggestions by other posters would be welcome.

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