A real estate broker’s commission may be determined using a percentage of the sales price, a flat fee, or a combination of both, according to a recent letter from HUD’s General Counsel Helen Kanovsky. The January 22 letter clarifies the distinction between using a formula to calculate a legitimate commission, as opposed to an unearned fee that violates RESPA. Under RESPA, a real estate broker cannot charge a fee if no, nominal, or duplicative work is done.

Ream more here:

We received many excellent and challenging questions during our webinar “Makings Sense of the New GFE,” hosted in the month of February. As promised, below you will find answers to all of the questions asked. The answers come from our best available resources, and we will all continue to learn more as HUD posts new information.

Question 1 – We understand two circumstances in which the compensation to the originator can change: the loan amount changes and a portion of the origination charges are dependent on the loan amount; the loan program changes. If a loan is floating and is later locked, we understand that the credit or charge to the borrower may change, but “Our Origination Charges” may not change and the originator’s comp (even if the YSP or rebate changes) will not change. Correct?

See the answer to this and 15 more questions here:

http://www.mortgagecomplianceadvisors.com/index.php/answers-to-questions-about-new-gfe

Continuing Education for Title Agents

Free classifieds for the Title Industry

Posted via email from Title Insurance
Continuing Ed for Title Agents

Main

No RESPA Violation for Closing Discount

February 20, 2010 admin

Posted by Elad Bushari

A federal appellate court has considered whether a developer violated the Real Estate Settlement Procedures Act (“RESPA”) when it offered a buyer a discount on closing costs if the buyer used an affiliate of the developer.