Posted by Art_MD on 2/28/05 8:32am
Msg #22821
origination fee - rip off ?
Did a closing where I had to keep my mouth shut - hard time doing it.
This was the first time I saw an origination fee of 7% !!! Interest rate of prime + 6.00 %.
Previous high origination fee was around 3.5 %.
Is this a bit steep ?
Art
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Reply by John_NorCal on 2/28/05 8:36am
Msg #22823
In my opinion, yes. When I was in the mortgage business, 2% was the norm. But if this a B loan or lower, origination fee can be pretty steep. Depends on the borrower.
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Reply by Loretta Reed on 2/28/05 8:49am
Msg #22824
Some brokers and lenders think that borrowers are idiots.
I did a signing last week, the broker made $10,000 and the origination fee was $8,000. I was disgusted. I couldn't say a word and the borrowers were smart enough to NOT SIGN the docs.
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Reply by Paul/MD on 2/28/05 8:58am
Msg #22825
This past Friday night..... fees were close to $11,000 -- Rate 8.5%. The borrowers had not problem with that.... what shut the deal down was the title company was requiring them to pay off two (2) Civil Judgments from the proceeds.... what a joke
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Reply by fiKS on 2/28/05 10:17am
Msg #22837
I had a borrower called me for notary services. It turned out to be HELOC closing docs. They asked me to notarized Mortgage and Lien Affidavit. Borrower said he applied for the loan online. Cost him $90 (total) plus what I charged him.
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Reply by Bobbi in CT on 2/28/05 10:26am
Msg #22840
High origination fee ..
I've seen 7%, too. Usually borrowers with Really Bad credit, which they mention when signing (even though I never comment or ask). "This is the only place we could get a loan."
Also, usually seen through my least favorite, late Edocs, always an error somewhere in the documents, lender.
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Reply by Ty_MN on 2/28/05 7:31pm
Msg #22932
Re: High origination fee ..
Been there and seen those fees. It's a shame and I feel that some people ARE taken advantage of. BUT, I also have to look at it like this...they probably ARE in the group of people who have BAD, BAD credit and lots of late payments, etc(maybe their fault; i.e "freeloader not paying their bills"...maybe not; i.e hospital bills from accident)...and this is ALL they could get and they have to do it or maybe they lose the roof over their head and if they have children I know I would take it and try to turn it around in the future. I think my heart goes out to the "misfortunate" and "under-dog" so it's hard sometimes but I have to remind myself that I'm not in their shoes and don't know the circumstances so I have to seperate myself. Who am I to judge?
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