Release Fees

Posted By: JobSecurity

Release Fees - 10/01/15 03:44 PM

We collect our release fees at closing and hold the fees until the mortgage is released. Do we show those under Section E even though the fees are being paid to and held by the bank? I could not find anything in the reg that addressed this.

Posted By: rlcarey

Re: Release Fees - 10/05/15 12:58 AM

So, you have an account that holds these fees for 15 to 30 years which you reconcile back to all outstanding loans on a monthly basis waiting for the loans to pay-off?? How do you know what the fee is going to be 10 years from now???
Posted By: RR Joker

Re: Release Fees - 10/05/15 12:58 PM

To add to Randy's all important will not find it addressed in the regs because it is a future fee...not a present fee.

We are not about to do the accounting requirements required for a fee like this, so when it applies, it is included as part of our loan fee.