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#1412416 - 07/07/10 04:29 PM Settlement/closing fee versus attorney fee
traveler Offline
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Joined: May 2010
Posts: 180
Alabama
What is the difference? I do understand that if it is truly a settlement/closing fee that it becomes part of the finance charge. I guess the only way to find out the actual purpose of the fee - is to ask the attorney. We are getting HUDs completed showing a dollar amount for a settlement/closing fee, but we think it is an attorny fee.

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#1412460 - 07/07/10 05:24 PM Re: Settlement/closing fee versus attorney fee traveler
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
It's an age old problem, but yes...techncially a closing fee should be a fee specifically for being present to handle the closing.

And yes...about the only way to hash it out is to ask. If they lump it (like they should) it should be a non-issue unles they itemize it out for you some other way. We ask if any part of the lumped fee is for that purpose, and if it is, we include in the FC calcs.

My understanding is that, based on the Q&A, the settlement fee shouldn't BE itemized unless an additional 3rd party is retained for that specific purpose, however the wording is poor and is interpreted differently by FI's and attorneys, best I can tell.
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#1412504 - 07/07/10 06:35 PM Re: Settlement/closing fee versus attorney fee RR Joker
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
We act conservatively on this issue. We include as prepaid finance charges, all settlement fees (or closing fees or escrow fees....or whatever the title company chooses to call it) and any "attorney fee" that is not for doc prep.
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