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South Shore
413 Posts |
 Posted - 02/22/2008 : 11:11:36 AM
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For the non-FHA approved Broker needing FHA:
Our Company has an Affiliate Program for non-FHA approved Brokers and you can assist your existing client with FHA product. You are recognized as the Broker, can make up to 2% Broker Fee, payable right on HUD; no ysp.
I am directly available to discuss our Program and your scenarios for properties in FL, MD, DE, NY, CT, MA, ME, IL, MN, AZ, and CO. (Same day review of your 1003 & credit and let's discuss what you have!)
Neely Mondello; DE
South Shore Mortgage
866-237-7452 x242
FAX: 631-574-1418
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1stintegritymort
1298 Posts |
Posted - 02/22/2008 : 1:37:59 PM
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| it is illegal to pay any broker fee to a non approved fha broker |
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South Shore
413 Posts |
Posted - 02/22/2008 : 2:54:28 PM
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Our specific Program for non-Approved Brokers is absolutely legal and I am directly available to discuss our Program and your scenarios for properties in FL, MD, DE, NY, CT, MA, IL, MN, AZ, and CO. (Have a scenario you think may work FHA? Need same day evaluation of your scenario? FAX or e-mail me your 1003 & credit report!)
Neely Mondello; DE
South Shore Mortgage (est. 1986)
866-237-7452 x242
FAX: 631-574-1418
***POLICY ALERT – RESPA/FHA EXISTING POLICY REGARDING NON FHA-APPROVED MORTGAGE BROKER FEES IN FHA MORTGAGE TRANSACTIONS***
The subject alert reconfirms existing FHA policy regarding the use of non FHA-approved mortgage brokers. FHA loan origination services must be performed by a FHA-approved lender or FHA-approved mortgage broker (loan correspondent). A loan correspondent may be compensated for the actual loan origination services it performs either directly by the consumer or indirectly by the FHA-approved lender without being in violation of either the RESPA statute and regulations or FHA regulations.
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).
RESPA provided further guidance to industry regarding payments by lenders to mortgage brokers in Policy Statement 1999-1. While the policy statement specifically speaks of lender payments to mortgage brokers, those payments are indirectly paid by the consumer and the policy statement would apply equally to payments made directly by the consumer.
10-30-2007 |
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South Shore
413 Posts |
Posted - 02/22/2008 : 2:55:28 PM
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Our specific Program for non-Approved Brokers is absolutely legal and I am directly available to discuss our Program and your scenarios for properties in FL, MD, DE, NY, CT, MA, IL, MN, AZ, and CO. (Have a scenario you think may work FHA? Need same day evaluation of your scenario? FAX or e-mail me your 1003 & credit report!)
Neely Mondello; DE
South Shore Mortgage (est. 1986)
866-237-7452 x242
FAX: 631-574-1418
***POLICY ALERT – RESPA/FHA EXISTING POLICY REGARDING NON FHA-APPROVED MORTGAGE BROKER FEES IN FHA MORTGAGE TRANSACTIONS***
The subject alert reconfirms existing FHA policy regarding the use of non FHA-approved mortgage brokers. FHA loan origination services must be performed by a FHA-approved lender or FHA-approved mortgage broker (loan correspondent). A loan correspondent may be compensated for the actual loan origination services it performs either directly by the consumer or indirectly by the FHA-approved lender without being in violation of either the RESPA statute and regulations or FHA regulations.
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).
RESPA provided further guidance to industry regarding payments by lenders to mortgage brokers in Policy Statement 1999-1. While the policy statement specifically speaks of lender payments to mortgage brokers, those payments are indirectly paid by the consumer and the policy statement would apply equally to payments made directly by the consumer.
10-30-2007 |
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