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Post Statistics: 1,520 Views, 4 Replies
Latest Post: Mon, Jan 26 2009 1:52 PM by Antonio Cibella
  • Sat, Jan 24 2009 8:17 PM
    Question about broker/lender fees

    Our broker is charging us a .875 (designated as broker origination fee on his GFE and designated as a loan origination fee on  Countrywide's GFE)  for a 4.65 refinancing with Countrywide and a $550 processing fee.  There was no "application fee."  Our broker's Good Faith Estimate shows on line 811 an "underwriting fee" of $595 and Countrywide's Good Faith Estimate shows on line 809  a "lender fee" of $690 in addition to the broker's processing fee.  My question is are any of these fees duplicates?   We are in Maryland.  We are one of the highest states when it comes to closing costs and I'd like to avoid paying anything more than I need to.

  • Sat, Jan 24 2009 8:36 PM

    Since you are working with a broker,only that GFE is pertinent.

    Lenders routinely send out GFEs to ensure that you have received one.  There have been many brokers who never supplied a GFE, thus most lenders send a templated version to each customer.  Refer to the broker's GFE to determine the actual costs of your loan.

     - View My Profile
    Mortgage Consultant
    M & M Mortgage, LLC #213677
    kmikkola@themmmortgage.com
    (651) 558-9807
  • Sat, Jan 24 2009 11:45 PM

    I just started reading about junk fees.  Our broker has an underwriting fee of $595 listed  and from what I've read so far about junk fees, "mortgagelenders do not undwrite loans.  Lenders underwrite loans so brokers should not be charging borrowers for underwriting a loan."

    I am going to to see if I can get this eliminated or reduced.  Does that seem likely?

  • Sun, Jan 25 2009 9:10 AM

    Not likely at all.  Brokers must disclose 3rd party fees on the GFE.  This would include the underwriting fee, title charges, credit report fee, etc. 

    For example, brokers don't examine title, but they will disclose the fee on their GFE.

     - View My Profile
    Mortgage Consultant
    M & M Mortgage, LLC #213677
    kmikkola@themmmortgage.com
    (651) 558-9807
  • Mon, Jan 26 2009 1:52 PM

    Kent is right on on this. The fee you would see in underwriting is the fee that the actual lender is charging, not the broker. On a final settlement statement at the time of close you will see where each fee is paid. Only fees paid to your broker are being 'charged' by the broker. An underwriting fee is a lender fee, and the broker has no control over it.

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