Broker fee

Posted By: gunches

Broker fee - 07/02/08 04:05 PM

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??
Posted By: Dan Persfull

Re: Broker fee - 07/02/08 04:25 PM

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.
Posted By: Many Hats

Re: Broker fee - 07/03/08 12:18 PM

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??
Posted By: Dan Persfull

Re: Broker fee - 07/03/08 01:04 PM

Commercial/business transactions are not subject to RESPA so it would be based on the agreement and/or state law if applicable.