- Fees -

Fees

The In House system is designed to automatically default fees whenever a Loan Parameter changes. Loan Parameters are defined as:

• Loan Type
• Subject Property Type
• Loan Purpose
• Subject Property State
• Investor
• Lender
• Broker

The Fees screen is used to prepare the Good Faith Estimate print form, calculate closing figures, and track the revenue for a transaction. The fees are organized by the HUD line numbers and grouped into the same series as a HUD-1 settlement statement.



You may edit Fees by double clicking on any field in the Total column. After double clicking the field a new screen will appear called the Fee Edit screen.



For HUD series 1000 items or the “Reserves Deposited with Lender” section, the Impound Details button provides a sub-screen that allows a user to edit the frequency, due dates, and cushion for fees held in reserve for the servicing of loans.



Fee Locking
In certain situations it is important to prevent the system from automatically defaulting fees. For example, consider the case where the Underwriting The process of evaluating a loan application to determine the risk involved for the lender. It involves an analysis of the borrower's ability and willingness to repay the debt and the value of the property. Fee has been setup to default to $300 for Conventional Loans and $400 for Portfolio Loan Programs. An employee might waive the Underwriting Fee in order to make a potential loan more attractive to the applicant. If the original application was for a Conventional Loan, but at some point the loan is changed to a Portfolio loan, the Underwriting Fee would automatically default to $400.

An employee would be required to re-waive the fee to fulfill the promise made to the borrower, a step that could easily be forgotten. It is possible to ‘Lock’ the fees to prevent the system from setting fee defaults.

• Open the Fees screen and click the Padlock icon on the toolbar or select Tools > Lock Fees from the menu bar.
• The Padlock icon changes from an unlocked padlock to a locked padlock
• You can click the Icon again if you need to Unlock a previously Locked fee screen.
• Locking fees only prevents the system from setting defaults when a Loan Parameter is changed. Even if the fees are locked, fees can still be edited manually.
• Locking fees does not prevent the system from synchronizing the Monthly Fees on the Mortgage a conveyance of or lien against property that is defeated upon payment or performance according to stipulated terms 2 a : the instrument evidencing the mortgage b : the state of the property so mortgaged c : the interest of the mortgagee in such property Data Screen with the Prepaid, Impounded, or Reserved fees. For example, if on the Mortgage Data screen, you change the Property Tax payment, the ‘1004 – Property Tax’ fee will be automatically updated.

Locking or unlocking the fees will automatically place a message and snapshot in the conversation log to record the event.

Note: Fees are always unlocked on newly created or copied loans.