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Old 07-27-2008, 08:39 AM
 
Location: CNJ/NYC
1,240 posts, read 3,641,764 times
Reputation: 408

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Quote:
Originally Posted by renriq02 View Post
You mean lender/attorney
Not sure why it particularly matters. Banks function differently, I guess. We don't charge those fees.
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Old 07-27-2008, 08:40 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
Reputation: 1007
But you make it up in other fees.

Regardless, it's the bottom line that matters

Quote:
Originally Posted by TwiloMike View Post
Not sure why it particularly matters. Banks function differently, I guess. We don't charge those fees.
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Old 07-27-2008, 08:42 AM
 
Location: CNJ/NYC
1,240 posts, read 3,641,764 times
Reputation: 408
Quote:
Originally Posted by renriq02 View Post
But you make it up in other fees.

Regardless, it's the bottom line that matters
It's absolutely the bottom line that matters. We charge a standard set of fees whether packages are sent or not. There aren't fees that increase on my HUD to "make up" if I had to mail something.
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Old 07-27-2008, 09:13 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
Reputation: 1007
So then it doesnt matter what you call it....

I have seen lenders charge 7% 1 origination fee, and 1 discount point.
This was when the rates were in the high 5's, and the borrower had a prime credit score.

Breaking down the fees will help a borrower to negotiate, and to see what are 'junk fees'. Just because you dont charge it doesn't make it 'wrong' or doesn't make it 'fluff'.

I dont charge credit report fees....but those are fees that are 'incurred' in a mortgage transaction. Also, the lender may be including the DU/LP fee.

Bottom line is the bottom line.

To compare a Good Faith Estimate on a purchase the borrower will need to look at the lender fees. Including the 3rd party fees is 'irrevelant' as the attorney represents himself. Some lenders may put low attorney fees, and this may throw off the 'bottomline'.

Some lenders do it this way
Bogus Lender
800 lines/Lender Fees = 4000
3rd party fees = 1000
Total = 5000

True Lender
800 lines/Lender Fees = 3000
3rd party fees = 3000
Total = 6000

You may think that the first figures are correct, but the 2nd one is the more accurate estimate. What will happen is that the 3rd party fees will actually add up to 3000, and the first total will go to 7,000.

Always compare the 800 lines (800-899), and add/compare up these fees.
Call the attorney directly, and ask them to give you all the 3rd party fees.
Once you have the attorney fees, then you can add it to the lender fees, and you'll have a close estimate.

After you have looked at the fees, now you can compare the rates/apr.

BTW be careful with lenders that charge 'discount points'. It is illegal to sell you a higher rate, AND charge a discount point. Discount points are not the same as origination fees. The government views them differently, and I believe also has different tax benefits.




Quote:
Originally Posted by TwiloMike View Post
It's absolutely the bottom line that matters. We charge a standard set of fees whether packages are sent or not. There aren't fees that increase on my HUD to "make up" if I had to mail something.
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Old 07-27-2008, 09:54 AM
 
Location: Greenville County, SC
275 posts, read 1,545,246 times
Reputation: 193
Thanks again renreq02!

The following items totalling $2,462.73 are in the 800 section of the settlement statement:

Loan Origination Fee--------$1200
Credit Report---------------$73.73
Appraisel Fee---------------$325
Tax Service Fee------------$81
Final Inspection------------$75
Underwriting Fee-----------$355
Processing Fee-------------$295
Life of Loan Flood Cert------$13
Overnight Mailing Fee-------$45
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Old 07-27-2008, 01:11 PM
 
Location: Cary, NC
1,036 posts, read 3,627,489 times
Reputation: 503
renriq said it right again. What does it matter if there is a $50 "junk" fee for sending a package if the TOTAL FEES are $500 less?

Some lenders eliminate "junk fees" easily, they lump it into a $750 underwriting fee or a $600 processing fee. There are then "less" fees on the report becuase they do not charge for credit reports, tax service, flood certs and mailing fees. In the end, you pay the same... its just what name they want to call it.

Again, the credit report seems very high from my experience... but lenders by law have to charge you the exact amount of this. We can't pay $20 for a credit report and then bill clients $30 for it.... that is a big no no. So I will just assume they pay a lot for credit reports.

Other than that, the total seems okay... some fees are more than what I am used to, some more. To know if you got the best rate/fee mix you really need to see what the rate sheets were on the day you locked. Its easy to say that rate is high/low today, but that doesn't matter as what is important is the day you choose to lock.

Overall, nothing that looks crazy or bad except the state tax stamp.... but thats a problem with SC, not your lender
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Old 07-27-2008, 04:28 PM
 
Location: CNJ/NYC
1,240 posts, read 3,641,764 times
Reputation: 408
Quote:
Originally Posted by renriq02 View Post
So then it doesnt matter what you call it....
If you're not adding extras and the standard numbers don't get inflated, then you're right: it doesn't matter what you call it.

Quote:
I have seen lenders charge 7% 1 origination fee, and 1 discount point.
This was when the rates were in the high 5's, and the borrower had a prime credit score.

Breaking down the fees will help a borrower to negotiate, and to see what are 'junk fees'. Just because you dont charge it doesn't make it 'wrong' or doesn't make it 'fluff'.
Did I say anything about the fees being "wrong"? Unless there was actually that third party fee incurred, I would consider it fluff. If there was FedExing going on then it may not be.

Quote:
I dont charge credit report fees....but those are fees that are 'incurred' in a mortgage transaction. Also, the lender may be including the DU/LP fee.

Bottom line is the bottom line.

To compare a Good Faith Estimate on a purchase the borrower will need to look at the lender fees. Including the 3rd party fees is 'irrevelant' as the attorney represents himself. Some lenders may put low attorney fees, and this may throw off the 'bottomline'.

Some lenders do it this way
Bogus Lender
800 lines/Lender Fees = 4000
3rd party fees = 1000
Total = 5000

True Lender
800 lines/Lender Fees = 3000
3rd party fees = 3000
Total = 6000

You may think that the first figures are correct, but the 2nd one is the more accurate estimate. What will happen is that the 3rd party fees will actually add up to 3000, and the first total will go to 7,000.

Always compare the 800 lines (800-899), and add/compare up these fees.
Call the attorney directly, and ask them to give you all the 3rd party fees.
Once you have the attorney fees, then you can add it to the lender fees, and you'll have a close estimate.

After you have looked at the fees, now you can compare the rates/apr.

BTW be careful with lenders that charge 'discount points'. It is illegal to sell you a higher rate, AND charge a discount point. Discount points are not the same as origination fees. The government views them differently, and I believe also has different tax benefits.
Yup.
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