Refer FHA Loans for Non Approved Brokers

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Craig_AE

34 Posts

Posted - 02/11/2008 : 1:06:44 PM

Legally refer and get paid on the HUD for FHA loans. Fast underwriting and personal service.

MANUAL UNDERWRITING
• No DU or DO Approval Required
• No Credit Score Requirements
• Alternative Trade Lines Allowed
• Purchase, R/T up to 97.75%*
• Cash Out up to 95%
• Collection and Charge Offs Not
Required to be Paid on R/T**
• 6% Sellers Concession Allowed
• Underwriter Approval Prior to Appraisal • Incredible Chapter 13 Programs

Approved states: AK, AL, CA, FL, GA, IL, IN, KY, MD, MI, MO, NM, OH, SC, TN, WI

For more information, please contact me:

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

MarkIFC

538 Posts

Posted - 02/11/2008 : 3:20:16 PM

But you cannot be compensated via YSP or Origination fee.
The referring broker must have the borrower sign an agreement that they will pay the referring broker, from their own funds, a "Broker Fee" for sending them to a FHA approved broker.
Don't think a borrower is going to pay you $$thousands as a referral fee.
The borrowers better not be too bright or have shopped around.

Craig_AE

34 Posts

Posted - 02/11/2008 : 3:41:53 PM

Actually, that is not correct. "...while a broker who is not FHA-approved may assist a prospective FHA borrower in obtaining an FHA loan, the non-approved broker cannot perform required FHA loan origination services. In these instances, the fee charged must be paid from the mortgagor's own available assets, must be disclosed on the HUD-1 at closing and a copy of the contract included in the loan file submitted for insurance endorsement."

The referral fee is assets...refinance funds are an asset. On purchases, the borrower must have 3% in the transaction, anyway. These files are manually underwritten and are a great sub prime substitute. I mean, to do a 90% loan with a 490 credit score is not to shabby, plus a 7% 30 year fixed rate!

The origination/broker fee is on the HUD. We have HUD attornies in our offices.

We are a tremendous alternative to the broker who does not want to have the required net worth and audits by HUD.

Best wishes,

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

KHufford

5897 Posts

Posted - 02/11/2008 : 4:00:13 PM

Here we go again....

MarkIFC

538 Posts

Posted - 02/11/2008 : 4:01:35 PM

7% rate OMG!!
I just closed a Manual Underwrite at 5.875% 30 fixed FHA. 3% down, 527 middle score.
No Origination Fee, No dicount points.

Like I said, the borrowers better not check around and they better not be too bright.

MarkIFC

538 Posts

Posted - 02/11/2008 : 4:12:47 PM

Oh, I see--- assets, like in "strip" some extra equity from the home.
Do a FHA cash-out and take a couple thousand as a "Broker Fee".

I guess a slick LO can bury that in the numbers.

I'd suggest not doing that in Ohio. I guarrantee our State's Dept. of Financial Institutions would love to look into something like that. Never mind what FHA would say.

DavDixon

18 Posts

Posted - 02/11/2008 : 4:16:58 PM

WOW! I cannot believe they let you on here! I guess it's true that they will let anybody on Broker Outpost to advertise. :) lol

quote:
Originally posted by Craig_AE

Legally originate and get paid on the HUD for FHA loans. Fast underwriting and personal service.

MANUAL UNDERWRITING
• No DU or DO Approval Required
• No Credit Score Requirements
• Alternative Trade Lines Allowed
• Purchase, R/T up to 97.75%*
• Cash Out up to 95%
• Collection and Charge Offs Not
Required to be Paid on R/T**
• 6% Sellers Concession Allowed
• Underwriter Approval Prior to Appraisal • Incredible Chapter 13 Programs

Approved states: AK, AL, CA, FL, GA, IL, IN, KY, MD, MI, MO, NM, OH, SC, TN, WI

For more information, please contact me:

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

mortgage_bull

4 Posts

Posted - 02/11/2008 : 4:21:58 PM

Mark, Perfect FHA is doing a great job and from the brokers who use them that I have talked to, I am signing up myself. I checked with HUD and this is legal. I wish not to go through the audits and requirements that the FHA requires. I do approximately 10 loans/month myself and have 7 LO's that average around 5 each. We do good clean business and I see this as an excellent choice for the sub prime borrower. If Craig can get a sub 500 score borrower done @ a 7% fixed rate loan, then it is a win for the borrower and for my firm.

Mark

DavDixon

18 Posts

Posted - 02/11/2008 : 4:22:39 PM

And how did you make your money? Sounds like you did a free loan. I thought we were in this business to help people and turn a profit as well? I've got some relatives I'll send your way. They love free stuff!

quote:
Originally posted by MarkIFC

7% rate OMG!!
I just closed a Manual Underwrite at 5.875% 30 fixed FHA. 3% down, 527 middle score.
No Origination Fee, No dicount points.

Like I said, the borrowers better not check around and they better not be too bright.

bmoran

1162 Posts

Posted - 02/11/2008 : 4:22:55 PM

quote:
Originally posted by Craig_AE

Actually, that is not correct. "...while a broker who is not FHA-approved may assist a prospective FHA borrower in obtaining an FHA loan, the non-approved broker cannot perform required FHA loan origination services. In these instances, the fee charged must be paid from the mortgagor's own available assets, must be disclosed on the HUD-1 at closing and a copy of the contract included in the loan file submitted for insurance endorsement."

The referral fee is assets...refinance funds are an asset. On purchases, the borrower must have 3% in the transaction, anyway. These files are manually underwritten and are a great sub prime substitute. I mean, to do a 90% loan with a 490 credit score is not to shabby, plus a 7% 30 year fixed rate!

The origination/broker fee is on the HUD. We have HUD attornies in our offices.

We are a tremendous alternative to the broker who does not want to have the required net worth and audits by HUD.

Best wishes,

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

Probelm is the fee needs to be commensurate with the service the broker is providing
Good luck in an audit

mortgage_bull

4 Posts

Posted - 02/11/2008 : 4:23:57 PM

Hit the wrong button:

Mark, let it go and do your business.

Paul

Craig_AE

34 Posts

Posted - 02/11/2008 : 4:34:02 PM

Bill,

You are correct. A broker can not just refer a client and collect a fee. As a wholesale lender, we only take fully processed files. As far as audits, we constantly pass with flying colors.

I appreciate your constructive comments.

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

MarkIFC

538 Posts

Posted - 02/11/2008 : 4:44:38 PM

From the Perfectfha.com web site:
"the non-approved broker cannot perform FHA loan origination services"

Now you just said you only accept fully processed files. How can that be? The referring broker "cannot perform FHA loan origination services".

I understand that to mean they cannot take the loan app. The last time I checked, the person who took the loan application was called the Originator.

MarkIFC

538 Posts

Posted - 02/11/2008 : 4:51:55 PM

Oh, and @ 5.875% with a YSP of 2.685 on a $165,000 loan I made $4,430. I don't call that working for free.

Of course, maybe that's why I've been stealing deals from all these other lenders lately. Three deals in the last 3 weeks that were originally started with other brokers I now have. I gave them each a rate at least .50% less and I'm still making better than $2,500 or more on each deal in my pocket.

The LO that works for money will lose in the end, the LO who works for referrals from his customers will be the winner.

bmoran

1162 Posts

Posted - 02/11/2008 : 4:56:05 PM

quote:
Originally posted by Craig_AE

Bill,

You are correct. A broker can not just refer a client and collect a fee. As a wholesale lender, we only take fully processed files. As far as audits, we constantly pass with flying colors.

I appreciate your constructive comments.

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

So then I don't understand. How do you take a fully processed file from a broker who isnt FHA approved. My understanding is the broker couldnt really do much, how do they get a case number and fully process a file if they arent HUD approved

And if the fee should be commensurate with the the service provided, how can they charge anymore then a minimal .250 or so???

kevinlevy

37 Posts

Posted - 02/11/2008 : 4:57:14 PM

I talked to hud and they said stay away from this as most lenders are doing it incorrectly and will be caught. All I can suggest is to contact hud before you get setup with one of these companies and see what they have to say.

Craig_AE

34 Posts

Posted - 02/11/2008 : 4:58:25 PM

Mark,

I do not want to get into a war of words, however to do "fha loan origination services" does not preclude filling out a 1003, verifying income and normal processing that can occur on any loan file, like FNMA....etc. Now, this broker can not order an appraisal.

Anyway, good luck Mark.

Best wishes,

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

slants

4274 Posts

Posted - 02/11/2008 : 6:06:07 PM

quote:
Originally posted by chrissy24

Let me know what you can do flmtg1@yahoo.com Ignore they naysayers, speeding is illegal too.

quote:
Originally posted by Craig_AE

Bill,

You are correct. A broker can not just refer a client and collect a fee. As a wholesale lender, we only take fully processed files. As far as audits, we constantly pass with flying colors.

I appreciate your constructive comments.

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

Am I misunderstanding your logic? Are you saying it's okay to speed even though it's illegal, so then it's okay to originate FHA without a license even if it's illegal?

1stintegritymort

1298 Posts

Posted - 02/11/2008 : 6:06:44 PM

Perfect FHA must be hiring a new AE every day. i feel like there is a new AE from their company trying to get business on here and intentionally post the same bs every time. it is getting quite ridiculous. it's pretty simple how their "loophole" works. they keep all the yield spread, no secret there. they probably make 4 points on the back and then say you, the "consultant" can charge your fees on the front.

i just dont get how they have the HUD Policy Alert right in front of their face and are so blind. i am sure that you have your own HUD/RESPA/Complaince/Legal Department, whatever you want to call it. you will need it when these files get audited and then more than likely, you will get fined and lose your approval. it is a POLICY ALERT!!!! that means it is VERY IMPORTANT to read. the whole point of the alert was to warn the Non FHA Approved Brokers so they know they CAN NOT be compensated with this arrangment.

what you really should do is call HUD and ask them who is held liable? the Approved FHA Lender or the Non Approved FHA Lender. my guess is that the Non Approved FHA Lender would be forced to pay back all origination fees and any other fees that were collected and refund it to the borrower. sure, maybe they have a "smart" legal department. maybe they know that if it is not legal, they will not get affected? i would think that they would still be held liable in some way, but i cant think of any other reason why they would do it? it is VERY clear that HUD was making a point to avoid this exact practice. it is staring you right in the face.

if you are not FHA Aproved, the "consultant fee" is suppose to go more like this...

the Non Approved FHA broker cannot get the case number, they cannot order an appraisal, they cannot do ANY work on the file. their compensation is based on them telling the borrower that they know someone else that can put them in a better loan and you are asking that borrower to pay you a fee for telling them where to go. you the LO get the contract signed stating how much you are charging the borrower for sending them to an Approved FHA Lender. once you have the contract and give the borrower the other company's contact info your job is done. you do not do any more work on the borrowers file since it is no long your deal. the loan must be originated by the other company and that company MUST perform all origination services with the loan. that would include taking the initial application, processing the file, ordering the appraisal, getting the case # from FHA Connection and then closing the loan in that company's name. the original LO that sent the deal would then be paid on the HUD with the amount disclosed in the contract. since the original LO did nothing on the file, they cannot be compensated by services that are normally performed on a loan and therefore the original LO or their company cannot receive compensation such as yield spread, origination, discount, broker or processing fees.

how can these fees be paid to the original LO's company when they did not do anything to "earn" those fees? by paying the original LO's company, that would be a violation of RESPA since that would be considered duplicated services. loan services cannot be performed by two companies, BOTTOM LINE

Craig_AE

34 Posts

Posted - 02/11/2008 : 6:06:45 PM

Chrissy,

Thanks, however PerfectFHA has spent much time and money to make sure we are fully compliant. There are other lenders that do this also, the difference is we will allow you to have your fees on the HUD as there is nothing to hide.

I will email you with information.

Thanks,

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

lunarhamster

3961 Posts

Posted - 02/11/2008 : 6:09:05 PM

Hmm, I hear many different things about this.

Many Attorneys believe this can be done legally, I dont know.

MarkIFC

538 Posts

Posted - 02/11/2008 : 6:13:19 PM

Writing the 1003, verifying income, collecting VORs, ect.. this is ORIGINATING.
Many lenders such as Flagstar order the FHA case # and appraisal for the FHA approved brokers. Ordering the case # and appraisal is not ORIGINATING the loan.

A non-FHA approved broker is not supposed to take the 1003, prepare a GFE, or in any way process the loan. You have it right there on your Perfectfha.com web site! The non-approved broker may not perform origination services.

The only way this could be in compliance with FHA guidelines is if the non-approved broker introduces the borrowers to the FHA approved lender and the approved lender takes the application and processes the entire loan.

Out of curiosity, who signs the 1003 as the "interviewer". What lender's name is on the 92900 and who signs the 92900-A as the Lender's Officer? It's supposed to be the loan officer taking the 1003 and completing the info on the 92900. But then that person has to be an employee of a FHA approved broker. I bet there is some funny business going on there.

MarkIFC

538 Posts

Posted - 02/11/2008 : 6:20:21 PM

I know a Realtor and the LO he worked with who were pulling a flipping scam. They had an attorney that told them it was all legal.

If you have the money, you can find an attorney that will tell you anything is legal. Until you get busted.

Just call that Realtor & LO and ask them.... Oh wait... you'd have to visit them in person--- at the Lebanon Correctional Institution. Or wait another 5 years until they get out.

slants

4274 Posts

Posted - 02/11/2008 : 6:26:04 PM

quote:
Originally posted by MarkIFC

I know a Realtor and the LO he worked with who were pulling a flipping scam. They had an attorney that told them it was all legal.

If you have the money, you can find an attorney that will tell you anything is legal. Until you get busted.

Just call that Realtor & LO and ask them.... Oh wait... you'd have to visit them in person--- at the Lebanon Correctional Institution. Or wait another 5 years until they get out.

I guess Chrissy's logic supports that. It may be illegal, but not until you're busted and it's tested in court.

Chris Clark

5966 Posts

Posted - 02/11/2008 : 6:32:20 PM

quote:
Originally posted by mortgage_bull

Mark, Perfect FHA is doing a great job and from the brokers who use them that I have talked to, I am signing up myself. I checked with HUD and this is legal. I wish not to go through the audits and requirements that the FHA requires. I do approximately 10 loans/month myself and have 7 LO's that average around 5 each. We do good clean business and I see this as an excellent choice for the sub prime borrower. If Craig can get a sub 500 score borrower done @ a 7% fixed rate loan, then it is a win for the borrower and for my firm.

Mark

If you're doing that many deals, then you're insane for not getting your own FHA sponsorship and cutting the "not-on-the-up-and-up" middle man out...

KHufford

5897 Posts

Posted - 02/11/2008 : 6:36:09 PM

This topic is so annoying and very played out....

I wish FHA would make some hard a fast rules about this to stop on the gray area bull

lunarhamster

3961 Posts

Posted - 02/11/2008 : 6:44:36 PM

But they dont, and people are co brokering all over the place, the Lenders know it and do nothing. I have been told that HUD knows it too. Guess we will see what they decide to do about it.

But until FHA does something I am sure it will keep happening, they sure are getting a ton of biz out of it.

homebroker@sbcgl

3410 Posts

Posted - 02/11/2008 : 7:23:41 PM

So true, I have learned in the last 14 years of being in the busines attorneys don't really now much more than we do, this is the sad truth. We put these attorneys on some pedistal as of they are the know everything group, although the laws are complex and many gray areas. Many attorneys have been put in jail for doing things they thought were legal. Look at many sources then back them up with your own legal check at a legal library, then maybe if you feel 80% of more confident you "might" be OK.

quote:
Originally posted by MarkIFC

I know a Realtor and the LO he worked with who were pulling a flipping scam. They had an attorney that told them it was all legal.

If you have the money, you can find an attorney that will tell you anything is legal. Until you get busted.

Just call that Realtor & LO and ask them.... Oh wait... you'd have to visit them in person--- at the Lebanon Correctional Institution. Or wait another 5 years until they get out.

gilby715

93 Posts

Posted - 02/11/2008 : 7:42:15 PM

quote:
Originally posted by Chris Clark

quote:
Originally posted by mortgage_bull

Mark, Perfect FHA is doing a great job and from the brokers who use them that I have talked to, I am signing up myself. I checked with HUD and this is legal. I wish not to go through the audits and requirements that the FHA requires. I do approximately 10 loans/month myself and have 7 LO's that average around 5 each. We do good clean business and I see this as an excellent choice for the sub prime borrower. If Craig can get a sub 500 score borrower done @ a 7% fixed rate loan, then it is a win for the borrower and for my firm.

Mark

If you're doing that many deals, then you're insane for not getting your own FHA sponsorship and cutting the "not-on-the-up-and-up" middle man out...

i agree chris if i was doing 10 deals a month i would spend the money to get fha certified. hell our shop is two guys(me and a partner) and we do about 10 deals a month total and we got fha last month. all our business is referals but from marks post he is funding 45 deals a month at his shop without fha so why bother. average deal around here is 4000 per loan. so the way i see it marks shop is doing roughly 180,000 a month but dont want to set up with fha? hey mark? i will financially advise for 10k a month. i'll show you what to do with the money your are losing by giving it to perfect fha. FHA isn't the nightmare it used to be.

Craig_AE

34 Posts

Posted - 02/12/2008 : 08:38:37 AM

To all who have replied against a "non approved fha broker" to get compensated for "referring" a borrower to PerfectFHA, I spoke to HUD, our attornies regarding our legality. We may receive a referral from a broker who has a customer that they can not place. They may refer them to PerfectFHA and receive a fee that is disclosed on the HUD that is from the borrower's assets....Period. If I have inferred anything else in my anxious attempt to describe this, I apologize for the confusion. Once referred, we finish the process and verify the data that has been given to us.

However, this is a wonderful solution for a broker to receive a legal fee, approved by RESPA and HUD to help their customer whom they could not place elsewhere.

I hope this helps.

The end.

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

1stintegritymort

1298 Posts

Posted - 02/12/2008 : 08:48:57 AM

quote:
Originally posted by Craig_AE

To all who have replied against a "non approved fha broker" to get compensated for "referring" a borrower to PerfectFHA, I spoke to HUD, our attornies regarding our legality. We may receive a referral from a broker who has a customer that they can not place. They may refer them to PerfectFHA and receive a fee that is disclosed on the HUD that is from the borrower's assets....Period. If I have inferred anything else in my anxious attempt to describe this, I apologize for the confusion. Once referred, we finish the process and verify the data that has been given to us.

However, this is a wonderful solution for a broker to receive a legal fee, approved by RESPA and HUD to help their customer whom they could not place elsewhere.

I hope this helps.

The end.

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

No one is disputing that you can not refer a borrower to an Approved FHA Lender and be paid as a "consultant fee" on the HUD. what is being disputed is that the company and LO that refers their client CAN NOT perform any origination services on the loan. you can not compensate the other company by paying them origination, discount or broker fees. you are not the first AE from this company to come on here trying to get business. from what the other AE's have said, it sounds like your company DOES pay the other company origination and broker fees. that is what we are saying is ILLEGAL. if a Non Approved FHA broker wants to refer their borrower to an Approved FHA Lender, they can do this with any company... they can send it WHOEVER they want... and get the "consultant fee". anyone member of the board can pay any Non Approved FHA broker on the HUD, not just Perfect FHA...

WorldWideWayne

2377 Posts

Posted - 02/12/2008 : 08:53:54 AM

quote:
Originally posted by WorldWideWayne

quote:
Originally posted by Chris Clark

quote:
Originally posted by mortgage_bull

Mark, Perfect FHA is doing a great job and from the brokers who use them that I have talked to, I am signing up myself. I checked with HUD and this is legal. I wish not to go through the audits and requirements that the FHA requires. I do approximately 10 loans/month myself and have 7 LO's that average around 5 each. We do good clean business and I see this as an excellent choice for the sub prime borrower. If Craig can get a sub 500 score borrower done @ a 7% fixed rate loan, then it is a win for the borrower and for my firm.

Mark

If you're doing that many deals, then you're insane for not getting your own FHA sponsorship and cutting the "not-on-the-up-and-up" middle man out...

Insane is just a fancy word for stupid...which you must think we are. In order to defend yourself you signed up as Paul Zug, aka Mortgage Bull. Or was is just a coincidence that you are both from the same little town in Georgia? You got the Bull part right!

MarkIFC

538 Posts

Posted - 02/12/2008 : 08:54:11 AM

Craig,
Yes they may refer a borrower.
If the refering broker is being paid more than a "token" fee for their service, however, then FHA has a problem with it. This is per our local HUD office. I think FHA is going to have a problem with it if they see 2 or more points.
What if that borrower is later told they could have saved that "Broker Fee" by calling any other FHA lender. Sounds like the grounds for a lawsuit to me.
Hum, I wonder who FHA would back in a lawsuit like that?

WorldWideWayne

2377 Posts

Posted - 02/12/2008 : 08:57:22 AM

WorldWideWayne

2377 Posts

Posted - 02/12/2008 : 09:03:19 AM

Is a non FHA approved broker allowed to originate an FHA loan? No. So how can they take the app? You need to be FHA approved to process an FHA application, so how can they order VO's.

This will be another black eye to an already bruised industry. How do you explain to someone that they could have gotten 5.875 with no points but since you got me (and I'm too lazy or shady to get FHA), its going to be 7% and 2 points? Don't tell me it's a free market and we all charge what we want, cause if you were FHA approved you would not be charging 7% w/2 pts.

Chris Clark

5966 Posts

Posted - 02/12/2008 : 09:37:05 AM

quote:
Originally posted by WorldWideWayne

Insane is just a fancy word for stupid...which you must think we are. In order to defend yourself you signed up as Paul Zug, aka Mortgage Bull. Or was is just a coincidence that you are both from the same little town in Georgia? You got the Bull part right!

How about that. I didn't realize they are from the same state as me...

SHABONE

356 Posts

Posted - 02/12/2008 : 10:22:04 AM

Forget this stupid topic! who's the hot chick on there website is what I want to know?

slants

4274 Posts

Posted - 02/12/2008 : 11:57:25 AM

quote:
Originally posted by Craig_AE

To all who have replied against a "non approved fha broker" to get compensated for "referring" a borrower to PerfectFHA, I spoke to HUD, our attornies regarding our legality. We may receive a referral from a broker who has a customer that they can not place. They may refer them to PerfectFHA and receive a fee that is disclosed on the HUD that is from the borrower's assets....Period. If I have inferred anything else in my anxious attempt to describe this, I apologize for the confusion. Once referred, we finish the process and verify the data that has been given to us.

However, this is a wonderful solution for a broker to receive a legal fee, approved by RESPA and HUD to help their customer whom they could not place elsewhere.

I hope this helps.

The end.

Perfect FHA
Craig Schimelman - Account Executive
Office: 678-352-8240
Cell: 678-481-9797
cschimelman@perfectfha.com
www.perfectfha.com

Sounds like your fancy inhouse attorneys confirmed to you what everyone has been telling you, but you have been defending vehemently: "A broker can not just refer a client and collect a fee. As a wholesale lender, we only take fully processed files." "The referral fee is assets...refinance funds are an asset. On purchases, the borrower must have 3% in the transaction, anyway."

Looks like the attorneys have set you straight and reined you in: "We may receive a referral from a broker who has a customer that they can not place. They may refer them to PerfectFHA and receive a fee that is disclosed on the HUD that is from the borrower's assets....Period."

Unfortunately, your disclaimer is still erroneous and illegal as one may not receive a fee simply for a referral under RESPA. Any compensation must be earned and if more than $500 or so, it will be viewed as compensated referral fee:

In transactions where the mortgage broker is not an FHA-approved broker, the loan origination services cannot be performed. Under these circumstances, RESPA would prohibit the payment to the non FHA-approved mortgage broker because those services, under FHA regulations, would have to be performed again by either an FHA-approved lender or loan correspondent. The payment to the unapproved broker for duplicated services amounts to an unearned fee in violation of section 8(b) of RESPA. Further, this payment also acts as a disguised referral fee for steering the borrower to the FHA-approved lender or loan correspondent which is in violation of section 8(a) of RESPA. While a broker who is not FHA-approved may assist a prospective FHA borrower in obtaining an FHA loan, the non-approved broker cannot perform required FHA loan origination services. In these instances, the fee charged must be paid from the mortgagor’s own available assets, must be

disclosed on the HUD-1 at closing and a copy of the contract included in the loan file submitted for insurance endorsement.

Under no circumstances, may a borrower pay a fee that is not commensurate with the amount normally charged for the similar services, goods or facilities. If the payment or a portion thereof bears no reasonable relationship to the market value of the goods, facilities or services provided, the excess over the market rate may be used as evidence of a compensated referral or unearned fee in violation of section 8(a) or (b) of RESPA and 24 CFR 3500.14(g).

WorldWideWayne

2377 Posts

Posted - 02/12/2008 : 12:27:53 PM

All I can say to that is "Ya what she said!" I love it when Slants gets involved.

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