Permitted Fee for Services?

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Question:

As a licensed real estate broker, can I legally collect a disclosed fee for actual services rendered, such as packaging and submitting a loan to a lender in the required stacking order, including explaining to the borrower the lender's stipulations required after the lender's initial review?

Answer:

RESPA Section 3500.14;

(c) No split of charges except for actual services performed. No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed. A charge by a person for which no or nominal services are performed or for which duplicative fees are charged is an unearned fee and violates this section. The source of the payment does not determine whether or not a service is compensable. Nor may the prohibitions of this Part be avoided by creating an arrangement wherein the purchaser of services splits the fee.

If you are actually performing a service, the fee is reasonable/bona-fide and you are not duplicating the fee this would be allowable. However, do you charge a processing/application fee? If so, I would think this fee should cover your "packaging" of the deal and a separate charge would be a duplication.

First published on BankersOnline.com 4/18/05