Posted on: 13th Mar, 2010 06:52 am
We are closing on our first house this week. It's an FHA loan and our loan officer just called me and ask us to cover his comission. He state that he is not make any commision from his lender. And should like us to do the right thing and pay him $2500. The mortage is for 200,000 what do I do.
Tell him you will give him 1%...$2000 but only if there is no yield spread premium.
Did he price it incorrectly? I'm confused?! He's asking you to pay for it under the table or is he charging an origination fee? If it's under the table then tell him to beat it!! He obviously priced your loan incorrectly and as a result has to take a loss. We've all been there once before. Sad to say but, it's a part of doing business.
Sounds like he priced something incorrectly.
What he is asking is illegal. No mortgage loan originator is allowed to ask anyone to pay anything outside of what was disclosed during the process.
If he is asking you to pay at closing and what you are paying is included in the closing documents, you could be nice and pay it. However, if your Good Faith Estimate was three pages long, he can not cause that to happen and the only way would be for you to pay him outside closing. If you do, you are not doing anything illegal, he is.
What he is asking is illegal. No mortgage loan originator is allowed to ask anyone to pay anything outside of what was disclosed during the process.
If he is asking you to pay at closing and what you are paying is included in the closing documents, you could be nice and pay it. However, if your Good Faith Estimate was three pages long, he can not cause that to happen and the only way would be for you to pay him outside closing. If you do, you are not doing anything illegal, he is.
you've received good advice...there should be no such payment made outside of the closing.
