All Forum Posts by: David Weintraub

 Oh, Hello.

Figure a "commitment fee" makes sense, and then it's probably reduced from overall "underwriting fee", or something to that effect.

I guess I am grouping the grotesque upfront fees ($500-$1,000-$2,000, etc) with the lower commitment fees in my sensitivities, which is probably wrong. 

 It's an Appraisal Management company that handles appraisals nationwide.  They're supposed to represent a wall between lender and borrower, but in truth, they're just a company that manages the appraisal process.

It was to him.  

Btw, you live in Cary?  Home of Appraisal Nation?  

Mind cracking some skulls for me over there?  :-) 

 Are you suggesting the same scenarios play out among accountants as they do HMLs?  

 I'm speaking about $50-200, max.  I've heard of these yahoos charging points upfront, which is crazy.

And I'm only saying to do so once there's a firm commitment, like ordering an appraisal, etc.  Because there's a chance the deal falls apart after the appraisal, and it's not like there wasn't office staff working on this.

Keep in mind, a loan officer like myself wouldn't see a dime of this money. 

@Jeff S. If you think all loans end in days, then you're either the smoke blower, or just smoking.

There are often times that a variety of issues come about which extends the process. For example, we worked on a loan for a couple of weeks in Allentown, which was a refi, appraisal was done/paid, but the owner didn't disclose to the city his plans for expansion.  Sparing the rest of the details, at closing the borrower decided to walk because he thought he was receiving "X" amount on that day, when he was receiving "Y" amount + rehab funding.  He was actually getting a great deal, but seemingly he was trying to use the money for something other than his stated goal.  

Soooo...after weeks of dealing with this man, he didn't close on the day of.  Should he have been charged a fee?  I mean, the processor(s) dealt with this guy constantly, and that's how they're paid.

Ultimately, he wasn't charged.  I said he should be.  

It's not a common thing, per se, but it happens.  And it's not an outlier either.  Loans are not failing to often, but the point is, I can understand the point of charging a borrower "upfront" before a loan is closed.  I'm not suggesting on day 1, or day 2, or after nominal work has been done.  Read more. 

 Seemingly, you're the master of the craft...