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#986783 - 07/02/08 04:05 PM Broker fee
gunches Offline
100 Club
Joined: Dec 2005
Posts: 210
We received a mortgage application from a broker who is charging a 1% fee for referring the applicant to us. My memory is telling me this is a violation of some sort. Is it??

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Lending Compliance
#986799 - 07/02/08 04:25 PM Re: Broker fee gunches
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,422
Bloomington, IN
http://www.hud.gov/offices/hsg/sfh/res/resp0222.cfm

Go to section II. RESPA Policy Statement 1999-1. They have to perform a certain number of tasks in order to earn the fee.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#987315 - 07/03/08 12:18 PM Re: Broker fee Dan Persfull
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
If it is a commercial transaction, the broker can charge the 1% fee and we would just have make sure it's reflected on the HUD and we've reviewed the disclosure/fee agreement between the borrower and the broker.....right??

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#987359 - 07/03/08 01:04 PM Re: Broker fee Many Hats
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,422
Bloomington, IN
Commercial/business transactions are not subject to RESPA so it would be based on the agreement and/or state law if applicable.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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