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!
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the attorney fee is a negotiable item. it should be reasonable and customary for your area.
Yes, but is this a separate line item or is this amount included into the settlement fees amount?
i would include them on the same line.
We just received an FHA approval from Seterus disallowing ANY settlement agent or attorney fees. Not only that, they indicated in their approval letter that any fees not previously approved could not be on the HUD and paid by the Seller at closing. I submitted the file with $1,000 in settlement fees. Could not get the Seterus negotiator to budge. This is a first for me. It is fully my intention to collect our fees outside of closing and show the fees on the HUD as POC.
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