Answer:
The purchase of a non-owner occupied 1-4 family rental dwelling is a business purpose under the provisions of Reg Z so Reg Z and RESPA do not apply to this transaction.
First published on BankersOnline.com 1/12/09
RESPA - Title Company Broker Fee
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Question:
In the HUD settlement for a purchase of a 1-4 family dwelling for rental purposes, the title company included a broker fee in addition to the commissions earned by the real estate company as part of the settlement to be paid at closing by the buyer/borrower. Should we accept this as part of our settlement without proof that the fee was earned by the real estate agent? Assuming it is a legitimate fee, should this be disclosed as a finance charge for APR calculation?
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