Posted by snoopdogMs on 6/26/11 5:25pm
Msg #387760

Redraw fee

Should a borrower for a RM have to pay a redraw fee if the error is 100% lenders fault? It's a long story, but title company manager said that lender will probably charge the lady a redraw fee regardless. She never saw the first HUD to know that the next HUD will reflect an increase.

Reply by Linda_H/FL on 6/26/11 5:31pm
Msg #387761

Should they have to pay it? I don't think it's right - but it's very common. Most times that condition is part of the closing instructions and maybe the commitment letter. It's usually $350-$500 depending on lender.

If it's 100% lender's fault, I would think their LO would fight for them and get it waived.

Reply by Linda_H/FL on 6/26/11 5:35pm
Msg #387762

Should have added..."in my experience"... n/m

Reply by Pat/IL on 6/26/11 10:32pm
Msg #387779

No

If the docs need to be redrawn because of lender error, the borrower should not pay. If the lender is asking the borrower to pay for its mistake, well, if I were the borrower, I'd find a new lender. If the lender ids Wells Fargo, they're probably hoping the borrower walks anyway.