Defining mortgage junk fees
Over the weeks we have imparted information from the Januray 7th SFGate article by Robert Bruss. Here is an excerpt from that same article regarding mortage junk fees:Q: I am in the process of refinancing my mortgage. What fees are unnecessary junk fees?
Darrin B.
Vacaville
A: The definition of a mortgage lender's unnecessary junk fee is any lender charge that is not for a specific service. Examples of legitimate lender fees include appraisal fee paid to the appraiser, title insurance paid to the title insurer, and credit report fee paid to a credit bureau.
But a junk fee is nonspecific, often for vague services that do not benefit the borrower. Examples of unnecessary junk fees include creative names such as:
- administrative fee
- documentation fee
- warehouse fee
- underwriting fee
- loan review fee.
Those services should be included in the mortgage interest rate.
- SFGate
posted by SFResidence.com @ 8:51 AM
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