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#1861515 - 10/15/13 06:18 PM Help with loans sold to FHLB
pjs Offline
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pjs
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oHiO
Can someone help me that sells their mortgage loans to FHLB?
We had a loan that was sold to FHLB - FHLB refused to buy it as the credit score fell below their requirements. We are booking it in-house. The credit score fee was collected for the loan to FHLB- we now have to pay a fee to FHLB because the loan was refused -are we required to give back to the customer the credit score fee? The loan has closed and is booked in-house. Thanks for any help you can give me.

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#1861519 - 10/15/13 06:25 PM Re: Help with loans sold to FHLB pjs
Truffle Royale Offline

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You'd have to run a credit bureau whether it stayed in house or was sold so the fee was rightly charged to the borrower and does not have to be refunded.

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#1861633 - 10/15/13 08:44 PM Re: Help with loans sold to FHLB pjs
Red Raiders Offline
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Compliance Land
Are you referring to a sort of "penalty" fee assessed by FHLB because the score was low or the actual fee for pulling a credit report?
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#1861689 - 10/16/13 11:24 AM Re: Help with loans sold to FHLB pjs
pjs Offline
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pjs
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I wouldn't call it a penalty- it's the credit score fee when the credit score is below a certain number.

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#1861743 - 10/16/13 02:40 PM Re: Help with loans sold to FHLB pjs
Truffle Royale Offline

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wait...FHLB won't buy the loan but they get to charge you a fee because you tried to sell it to them with a low credit score?
seriously???!

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#1861790 - 10/16/13 03:23 PM Re: Help with loans sold to FHLB pjs
rlcarey Online
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rlcarey
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Galveston, TX
This all sounds like secondary market fees anyway and are not part of the loan transaction. The fees do not come into play until the bank tries to sell the loan after closing. If the bank chose to recoup these fees, they would have just been part of the Bank's origination fee.

I'm not really sure what the issue might be?
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#1862141 - 10/17/13 12:34 PM Re: Help with loans sold to FHLB rlcarey
pjs Offline
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pjs
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Sorry, been busy- the loan was a forward commitment to buyer- cash out refi but the credit score was low- anyhow- the buyer refused it because did not meet requirements. We closed the loan in-house. Pretty much what RC said. Thanks!

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