Posted by desktopfull on 11/21/11 9:43pm
Msg #404659

Here's a first!

Got a loan package tonight and they are escrowing an annual fee to the bank for the loan. Has anyone else seen this?

Reply by Susan Fischer on 11/21/11 9:58pm
Msg #404663

I wouldn't sign that on a bet. Talk about "think we'll

charge you a fee fee."

Charge me for ~your~ profits because you *can*?

Bwaaaaahhhhhhhhhhhaaaaaaaaa.

You don't have to take it, people.

DON'T SIGN THAT.

Reply by desktopfull on 11/21/11 10:02pm
Msg #404664

I wouldn't sign either, but I can't say a word about the fee n/m

Reply by Susan Fischer on 11/21/11 10:38pm
Msg #404670

Why you wouldn't sign, then, desk? All things being

equal, that Fee's a deal-breaker for the consumers of credit = the 99%.

What's your reason "not to sign," aside from the superfluous Annual Fee to "service" their own loan?

Reply by desktopfull on 11/22/11 8:33am
Msg #404684

Re: Why you wouldn't sign, then, desk? All things being

Don't know why the personal attack. If someone offered this loan to me with that provision I would continue shopping around for a lender. However, since this person has a realtor and they have representation it's this person job to advise and I certainly am not going to interfer in this purchase.

Reply by Susan Fischer on 11/21/11 10:25pm
Msg #404666

OOPS, to con't: Good thing I retired. I just couldn't

*even* present that document...a monthly fee to take your money, with interest, (no matter how how [cough] low.)

NO. I couldn't participate, knowing what I know full-well about the foundation-less fixeruppers that were magically "appraised" at un-flippin believable prices like in the Bubble's bad ol' days...

Jmnsho.

Reply by ReneeK_MI on 11/22/11 5:24am
Msg #404680

Was it a HELOC?

The annual fee can be worth it, depending on the interest rate it offsets.

Reply by desktopfull on 11/22/11 8:27am
Msg #404683

No, it's a purchase with mortgage. Very strange, never heard

of this before. I was just wondering if anyone else had seen this.

Reply by Michael Brudenell on 11/22/11 10:09am
Msg #404690

Re: No, it's a purchase with mortgage. Very strange, never heard

I used to be an operations manager for Washington Mutual. They used to have a first mortgage product that could be used for purchases. It was called the Mortgage Plus. It could be used as a HELOC, and had features to lock in outstanding balances. This product had an annual fee.

Reply by ReneeK_MI on 11/22/11 4:35pm
Msg #404748

Thanks, Michael - and since the annual fee ...

...would be included in the APR calculation, the borrower's are thereby protected from entering into any kind of 'predatory' or high-cost loan w/out being fully advised/aware. Point being, just because it sounds a little out of the ordinary doesn't necessarily make it a bad thing.

Reply by bfd110_IN on 11/22/11 5:16pm
Msg #404753

Unless it was a USDA loan. There was a change in October that reduced the monthly MI. By doing that though there is an annual fee that will be paid. The reason for doing it was to allow the plan to become self standing. Allows you to finance over 100 LTV but you are going to pay for it.

Reply by desktopfull on 11/22/11 5:19pm
Msg #404754

Thanks that's it.

Never seen this before.

Reply by cremevette on 11/23/11 2:00pm
Msg #404818

Here's my first ever for the day (out of 11 years)

AUTHORIZATION TO COMPLETE BLANK SPACES
Date:
Lender:
Borrower Name(s):
Property Address:
YOUR SIGNATURE BELOW AUTHORIZES YOUR MORTGAGE BANKER OR ESCROW AGENT TO FILL IN
SPACES YOU LEFT BLANK IN SPECIFIED LOAN DOCUMENTS YOU ARE ABOUT TO SIGN OR MAY HAVE
ALREADY SIGNED. UNDER STATE LAW YOU CAN GIVE THIS AUTHORITY, BUT YOU ARE NOT REQUIRED TO DO SO.

Nope, they didn't sign it.

Reply by jba/fl on 11/23/11 2:03pm
Msg #404819

This should go on the very top of the BO's stack of docs, even above the RTC. And you should perhaps witness their signature on their copy as well.

Sure looks sneaky to me....shameful chutzpah!