Posted by MonicaFL on 4/14/09 6:36am
Msg #284823

will someone set me straight on this - Please.

Okay, i just read a post where the signing agent was to collect $3000 from the borrower for a loan modification fee. What is the difference in collecting an upfront fee for a loan modification and an application fee? I thought they were illegal. I know the difference between a loan modification and an application. Just curious about the fees. Thanks in advance for all of your help.

Reply by Lee/AR on 4/14/09 9:47am
Msg #284852

This is only my limited experience: Many years ago, I did a Loan Appl. where I needed to either collect a couple hundred or have a form completed that put same on a credit card. Also needed to collect a bunch of paperwork. The signer knew I was a notary via the hiring co., 'tho nothing needed notarization. Very time-consuming and party refused to complete the signing, but I got paid.
Loan Mod Appl.--have done 1 before this type of business 'hit the notary boards'. The fees are in the thousands and you don't get paid unless signer gives you the needed checks. Also the co. tells them you represent the co. and you are supposed to go along with this. (I didn't.)

The difference: Hundreds vs Thousands. Being truthful & neutral vs less than honest & not exactly neutral as you won't get paid a dime unless you collect the checks. Got it now?

Reply by Linda_H/FL on 4/14/09 9:56am
Msg #284854

The Application Fee you pay when you apply for a

mortgage is money allotted for certain app processing steps...process the app, shop for a loan, credit check/credit report, etc., etc...

The thousands collected on these mod apps, from what I hear, have no designated purpose at all, but if I'm wrong, someone please correct me. In fact, I was told by the company "it's for the lawyers...they want their money, you know"...

MHO

Reply by Les_CO on 4/14/09 10:15am
Msg #284861

Remember, sometimes the guy just driving the get-away car goes to jail for bank robbery too. AND would you really help your Mom, or your best friend fill out one of these “applications”??

Reply by Stamper_WI on 4/14/09 10:33am
Msg #284872

General warnings are that money should not be collected up front. The caveat is if an attorney is doing the modification.
Check with your state to see if what they are doing is legal. Many states require Licensure. of the companies.

Reply by Pat/IL on 4/14/09 6:57pm
Msg #284983

Re: will someone set me straight on this - Please. n/m