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#178577 - 10/31/07 11:08 AM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Realty Queen]
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Member
Registered: 07/20/07
Posts: 22
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1. Origination is never required to be charged for any bank, lender, or broker. In fact I never chrage it as it does not make financial sense to do so.
2. Get the GFE from your client not the Loan Officer. Many Lo's don't want to send a GFE to a Realtor b/c lots of Realtors will then send it to "their mortgage guy" A lot of the work has been done already as far as conslultation, credit report, finding the right program etc... only for another company to swoop in at the last second and cut fees.
We get paid just like you. Commission on closed deals. What if you thought you might lose a client at the last second which you had worked hard for many months?
I don't mind my Realtors seeing my GFE's in fact I encourage it.
This is just the mindset of the actions you are seeing.
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#178729 - 10/31/07 09:35 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Realty Queen]
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Veteran Member
Registered: 11/15/05
Posts: 724
Loc: Riverside County, California
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Why exactly is 500 for underwriting and 400 for processing outlandish? I charge 450 for each.
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Adam Clarke Commercial and Residential Lending Specialist access commercial finance Direct: (951) 318-1162 Small Business Success
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#178839 - 11/01/07 09:53 AM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Realty Queen]
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Veteran Member
Registered: 11/15/05
Posts: 724
Loc: Riverside County, California
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Well, I guess it is easier to process a loan in the midwest. I used to pay a gal 500 to do it. After the slowdown I started doing my own files and I think 500 isn't nearly enough. It is probably just a perception difference.
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Adam Clarke Commercial and Residential Lending Specialist access commercial finance Direct: (951) 318-1162 Small Business Success
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#178884 - 11/01/07 01:22 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Realty Queen]
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Member
Registered: 03/13/07
Posts: 56
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"I guess the Lenders adjust their fees so people can still afford to buy houses so the econ. doesn't fall through completely."
I would be interested to know if you adjusted you commission as well? If the split was 3/3 did you adjust your commission for the econ? Did you drop your side to say 1%, and reduce the overall cost of the home by the two percent difference? Also, did you adjust your commission split with your broker? He has to live too, so did you adjust that down as well? No, just expect the Lender to work cheaper?
Just thought as a fellow agent I would show you the logic you implied above by Criticizing those fees.
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#178921 - 11/01/07 03:30 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: NOZZ]
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Veteran Member
Registered: 12/17/06
Posts: 648
Loc: SoCal
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$400 for processing? That sounds like quite the deal to me. My processor charges well over that but she is worth every cent & then some.
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The Loan Diva
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#179001 - 11/01/07 10:14 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Loan Diva]
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Member
Registered: 01/15/07
Posts: 155
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Nozz,
I HAVE on ALL of my transactions this year adjusted my commission to what best suited my clients. I have lowered my side on both buying and selling, so that the sale would be more profitable for my client wheter being the one to buy or sell. Everyone says that closing costs are typically 3% of the loan...which is a lie. It doesn't make sense when someone charges: 900 loan origination, plus 900 broker's fees (for the loan broker, her boss), then 500 for loan underwriting, 400 for loan processing, 800 for a title search, 300 title processing, 300 title underwriting, and about 3K in other misc. charges, then fees state charges (which there is NO way to get around mrotgage tax, doc. stamps, recording fees etc), and so on. When it came down to it, they were about to spend 6k in closing costs on a 60,000 loan. Most first time home buyers in my area buy in the 70's 100,000. The economy is different. So to ask if I fix my commission, the deal is, when your house is worth less then you're paying less to sell it, which means I make less than those who live in states where houses are more expensive. Of course realtors and loan officers make more in other places, selling a starter home is different and even though loan papers are the same, the incomes and house values are different and so the charges have to be comperable to what is fair to charge people based on their income. If they had 6K to put towards closing costs, don't you think they would have had the money to buy a larger home?
Anyway, they shopped around, and found a place that would get them a loan, and was more reasonable and are paying 3K in closing costs.
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#185763 - 12/06/07 05:09 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Greg Phillips]
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Member
Registered: 08/15/07
Posts: 20
Loc: Las Vegas, NV
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A GFE isn't worth the paper it's written on.
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#188097 - 12/18/07 06:51 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: PaulChapman]
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Member
Registered: 05/16/07
Posts: 32
Loc: Dallas, TX
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A GFE isn't worth the paper it's written on.
Then you need a new loan officer.... Responsible loan officers are out there and their GFEs are accurate.
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#188099 - 12/18/07 06:56 PM
Re: Loan Origination Fee & Good Faith Estimates
[Re: Realty Queen]
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Member
Registered: 05/16/07
Posts: 32
Loc: Dallas, TX
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Nozz,
I HAVE on ALL of my transactions this year adjusted my commission to what best suited my clients. I have lowered my side on both buying and selling, so that the sale would be more profitable for my client wheter being the one to buy or sell. Everyone says that closing costs are typically 3% of the loan...which is a lie. It doesn't make sense when someone charges: 900 loan origination, plus 900 broker's fees (for the loan broker, her boss), then 500 for loan underwriting, 400 for loan processing, 800 for a title search, 300 title processing, 300 title underwriting, and about 3K in other misc. charges, then fees state charges (which there is NO way to get around mrotgage tax, doc. stamps, recording fees etc), and so on. When it came down to it, they were about to spend 6k in closing costs on a 60,000 loan. Most first time home buyers in my area buy in the 70's 100,000. The economy is different. So to ask if I fix my commission, the deal is, when your house is worth less then you're paying less to sell it, which means I make less than those who live in states where houses are more expensive. Of course realtors and loan officers make more in other places, selling a starter home is different and even though loan papers are the same, the incomes and house values are different and so the charges have to be comperable to what is fair to charge people based on their income. If they had 6K to put towards closing costs, don't you think they would have had the money to buy a larger home?
Anyway, they shopped around, and found a place that would get them a loan, and was more reasonable and are paying 3K in closing costs.
Those lenders can roll some fees into the rate..... like the bank did in your first post. I wouldnt do a $70K deal for less than 3 points.... on the GFE or in the rate, no matter. I would do a $600K deal for 1 point though. The closing costs as a % of the loan amount is a farce. It is a higher % on low loan amounts and lower % on higher loan amounts. <= and before someone goes off about preying on the poor... It takes time to Originate, Process, Underwrite, Close & Fund a Home Loan regardless of the amount. And lower loan amounts tend to be a little more tricky. So this isn't gouging... it is what it is.... business.
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#203777 - 02/18/08 01:57 AM
Re: Loan Origination Fee & Good Faith Estimates
[Re: DallasLoanGuy]
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Member
Registered: 02/11/08
Posts: 52
Loc: California
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Just browsing around here, really had to stop and comment on the reltor who thinks $900 is a rip off for underwriting and processing. You know, shopping around for the lowest good faith estimate of fees doesn't always do you good. Good faith estimates can be made to show whatever suits that particular broker. By nitpicking fees on a good faith estimate, many times you are taking business away from an honest broker and giving it to a less honest broker, only to see those fees creep back on the final closing statement.
It makes it extremely tough when you give honest quotes upfront to lose business in a shopping situation. Just my two cents, and I had to choose these words properly in order to keep them kind ;0)
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