Profile picture for Smcsweeney

Our initial Good Faith Estimate had a 1% broker fee. Then the fee was increased to 1.5%? Why?

  • February 12 2009 - Athens
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Answers (25)

Profile picture for FinancialResources
You should look at the total of all lender fees that are being charged. Depending if the loan is being brokered, or banked the fees may appear on different lines of the Good Faith Estimate.

In the event that you are actually paying an extra .5% of the loan amount I would say to quickly find another lender.



  • July 04 2009
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Profile picture for Mortgage South
This is not a good lender. We discount our fees to .75% and keep it there. 
  • July 01 2009
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Mark....what kind of good faith estimate changes the broker fee?  It's not a pass through from the direct lender!

Mike,

I did miss that.
  • April 12 2009
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Unless you signed a rate lock form, you cannot hold the lender to the intial FGE. The rate lock form was designed to protect borrowers and hold lenders to their quote, not a GFE. A GFE is only an estimate.
  • April 12 2009
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AA---Socal kept everyone on here informed while he was going through the refi process and had good things to say about the zillow lender that was used. I am surprised you missed it.
  • April 11 2009
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Profile picture for hankbailey
Ashley,
You "were" a Bulldogs fan.  That makes me sad.  It is in your blood.  Common...
  • April 11 2009
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No cop outs needed. Just giving another reason as to "why" this may have happened. Not that I agree.
  • April 08 2009
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You are well respected on the boards and a positive review from you would mean a lot.  I hope you gave them a review.

  • April 08 2009
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Profile picture for SoCal Engr

Andrew,

Yes, I used a Zillow lender. And, he did just what you indicated should be done. When the terms/fees changed, he informed me directly and then followed up with an updated GFE. And, the only things that were changing were fees that were outside his control (though many of these adjusted downward vice upward).

  • April 08 2009
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Ashley that's a cop out!

Disclose all the fees when they change re-disclose....Why would you ever wrap fees into a broker fee unless you want to hide the fees.

So-Cal did you use a zillow lender?
  • April 08 2009
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Profile picture for SoCal Engr

On my recent refi, all fees either stayed the same or were lowered...all while the broker was also getting the terms of the loan improved. And, as the rates/terms were being improved, I got new GFEs reflecting these changes. I also got a rate lock notification early in the process.

If you're not getting this type of service, or answers to "why" - you need to find another broker (assuming you are not time-constrained).

Have you asked your current broker to explain the "why"?

  • April 08 2009
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Oh, and BTW, makes me sad to know you are writing this from Athens. I grew up in ATL and was a HUGE bulldog fan.
  • April 08 2009
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Kevin. Well put.

AA, Generally I would agree with that statement, but what if the broker decided to wrap the office fee's that were originally quoted separetly into that fee, now you have a higher broker fee.

Just playing devils advocate. Sorry. :)

  • April 08 2009
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The broker fee shouldn't change...period!

  • April 08 2009
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Profile picture for hankbailey
Kevin is correct.  A GFE is an "estimate" only. Costs can change from the initial GFE through when the borrower's financials are looked at, and credit risk is determined.  The best examples are things like appraisal fees For which may include a "typical" appraisal fee for the area, but might differ from the appraisal service actually used.  

It still puzzles me that the broker fee could be so much different however as generally these can be set based upon loan size, any back-end percentage they are getting paid based upon your rate as reflected by PAR, and are normally a constant as compared to a overnight fee, or appraisal fee, per my example.
  • April 08 2009
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It is also possible the GFE was provided from a post application stage, but before the rate was locked.  If this is the case, then refer to what a GFE actually is.  A Good Faith Estimate.  Although in good faith, it is an estimate of fees.  Which can include fees which are not "hard" or "flat", such as; escrow setup, title, payoff on current loan. 

These are not within the control side of the GFE if it is provided to show you options and estimated numbers during your loan shopping period. 

They should however be close and as accurate as possible, with any changes easily explained and shown to you.  A change in a broker fee could come from an increase in rates, or a change in lender options due to overlay guidelines.

Every GFE is it's own animal though.
  • April 07 2009
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Profile picture for hankbailey
Bud Smoker, that's a lot of animosity toward Realtors for someone who supposedly smokes buds. <g>

Actually, I will lower my commission to make a deal work.  I want nothing in the way of making a win-win situation for everyone.
  • April 01 2009
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Profile picture for Bud Smoker
Just be glad your mortgage guy didnt pretend to be a realtor and try and charge you a 3% fee for the transaction
  • March 31 2009
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Profile picture for hankbailey
They should have provided you with an updated Good Faith if that was the case.  The broker cannot just arbitrarily adjust their figures without updating their disclosures.
  • March 31 2009
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That is a question that you will need to press your broker for and get an explanation.  There could be many reasons why.  Like getting a rate lock extension, he didn't not lock right away and needed to buy down the rate a little to get what he originally promised you.

And many more.

Good luck.

  • February 13 2009
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Rudi,
I just don't buy estimates are always low.  It's the 2nd time you have posted that...that I have noticed!

If you had an accurate estimate it wouldn't end up costing more!
  • February 12 2009
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Rudi,
Just put the Ruger to your temple, say ten hail mary's, squeeze the trigger and be done with it.  You are killing everyone else with your paranoia and credit crime blab.  Upfront, behind, backwards, sideways . . .
  • February 12 2009
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Sweeney, the last word say's it all, doesn't it? .. When before this time have you ever receive an Estimate that didn't end up costing you more?

A GFE is an antquated document that really has no real worth except to manipulated. A Legal Binding Agency Agreement does. It completely spells everthing out so all parties understand what theyy are aggeing to be performd. Including all costs.

But, this also causes you to be 100% commitment in whom you entrust with all the personal information. ... Best wishes! .. Rudi
  • February 12 2009
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If they increased the origination fee, they have to fully re-disclose to you and not wait until settlement.  To do otherwise is a RESPA violation and if audited by your state, they will get fined and will have to give back the difference to you: increase in 1/2 point.
Upon any increases in fees, rates or programs, the lender generally has only 3 business days to re-disclose such changes.
In Maryland, and many other states, if such is increased 10 days after initial loan docs, the file must be canceled and started all over again---with exception to the rate lock of course.
  • February 12 2009
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Profile picture for oldskoolballr
You will need to ask your broker that question as all answers here will be speculation.  It could also be that you have a bad broker.
  • February 12 2009
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