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#2245612 - 11/17/20 08:40 PM Fee Question
Refresher2020 Offline
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Joined: Aug 2020
Posts: 34
I'm new to a lot of things compliance related. I know zero about Servicing and payoffs. I looked through Reg Z and Reg X without luck. Can anyone help with this?

We have been charging a set amount for each Certificate of Satisfaction we are having recorded once an in-house loan has been paid off.
This is charged for the payoff regardless of what the county/city charges. Does this recording fee charge need to be the exact amount of what the county/city charges? or can it include a difference to cover our administrative costs.

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Mortgage Servicing Rules
#2245619 - 11/17/20 09:38 PM Re: Fee Question Refresher2020
rlcarey Offline
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rlcarey
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Posts: 75,540
Galveston, TX
Whether you can charge a fee or not and if it is limited would be a matter of your loan contract and State law. Any unearned fees represent a Section 8 issue, so if you are charging administrative costs, prepare to defend them.
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#2245626 - 11/17/20 11:29 PM Re: Fee Question Refresher2020
Refresher2020 Offline
Junior Member
Joined: Aug 2020
Posts: 34
Ok, so we should charge the exact recording fee to release the lien and if they want to charge an administrative fee than they can but it must identified as such.

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#2245628 - 11/18/20 12:14 PM Re: Fee Question Refresher2020
rlcarey Offline
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rlcarey
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Posts: 75,540
Galveston, TX
Itemization is purely a business decision.
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#2245760 - 11/20/20 08:55 PM Re: Fee Question Refresher2020
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
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On the Net
I assume this is charged when the debt is extinguished and is not prepaid at consummation?

Years ago we had a big to-do because liens had to be released and lenders charged the fee when the loan was made. But when the loans were paid off, the filing fees had gone up and they either wanted more money from the borrower or didn't release the lien.

I suppose one question is, are you required to file this or to just provide it to the borrower, and then does state law allow a fee to be imposed? If a fee is allowed, is a markup allowed?
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