Mortgage broker works for our bank; he has duel roles. He originates TRID loans that are in our portfolio and he brokers loans through secondary market investors that are originated on that side. Sometimes customer has Loan A in our portfolio (temp construction loan) and then same customer has Loan B (const perm financing) through secondary market and pays off our Loan A.

A customer owes an appraisal fee for a potential Loan B that did not come to fruition on the secondary market side and Mortgage broker wants to add that fee to our portfolio Loan A at payoff. Is there a compliance issue here at all? I just wasn't sure if we could put charges from one loan onto another when Loan B would not have been in our portfolio. Appraisal fee is for same property, of course.

Thank you.

How does that appraisal fee remotely apply to a loan already on your books? What would be your legal authority to add an unrelated fee to the loan?

Well, that is exactly why I was asking the guru's in here. I have never in my 20 years of working in loan servicing ever been asked that question. I guess there is a first time for everything!

I am sure you realize the type of conflict of interest that is present here? I know that is another issue. This might not even be legal in some States.

Thank you both!