Hello all, my Wells Fargo negotiator sent me an email asking me to adjust our HUD-1 attorney closing fee from $2,0000 to $1,200. I asked her if according to FHA's ML 2008-43 our attorney fee could be allowed as a separate line since it indicates that in state's that require an attorney to close an exception can be made. She told me "Yes, we will pay the attorney to close the transaction in your state $1,200.00 maximum" to which I responded how is the closing fee different than an allowable attorney fee in our state? Her reply:

"That is from 2008?

We do not pay attorneys

You can call HUD if you would like

Correct you are an attorney closing state

I am paying you 1,200

I am very good at what I do and am up to date on what is allowable and what is not

You can go to the HUD.GOV website and review the new mortgagee letter as there are

Numerous important changes that happened in October 2013"

I just want to know if I wasn't an attorney, would I not get allowed any settlement fees? Or am I misunderstanding something where the max allowed attorney fee for my state is already combined in the settlement fee max amount to total $1,200? I think I read somewhere that for an offer that's less than $150,000 (which this is) the settlement fee max is $750 which might mean she is allowing $450 for my attorney fee.

Anybody able to add input or clarity? Should I ask for a variance? Thanks!