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#698539 - 03/08/07 04:24 PM RESPA Fees
Georgia Golfer Offline
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Georgia Golfer
Joined: Jun 2003
Posts: 415
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Our construction/perm loans charge a $350 Construction Inspection fee that shows payable to the bank on the HUD-1. We allow for 6 inspections at $75/ea during the construction period. If more inspections are used, the extra fees are collected "most of the time" on the HUD-1 at modification. But, if only 5 inspections are used, they are putting the extra $75 into income & not refunding. The inspections are being conducted by appraisers and the bank, depending on the circumstances. I understand the position of upcharging 3rd party fees, but does this qualify since there is no way of knowing who is going to conduct the inspections?

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#698653 - 03/08/07 05:57 PM Re: RESPA Fees Georgia Golfer
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,316
Galveston, TX
"the extra fees are collected "most of the time" on the HUD-1 at modification"

If you are doing a construction/perm - what HUD-1 at modification?

6 times $75 = $450? Additional charges of $75 would be a subsequent event. Keeping any unearned inspection fees = receiving an unearned fee.
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#698792 - 03/08/07 08:00 PM Re: RESPA Fees rlcarey
Georgia Golfer Offline
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Georgia Golfer
Joined: Jun 2003
Posts: 415
1st Tee
Sorry, Randy, I meant $450. The mort. dept has been providing an additional HUD-1 at modification.

Your last sentence answered my question. If they charge $450 atthe original closing & bill out $375 during the construction phase, they should be refunding the extra $75 at closing.

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