Can a mortgage company charge a lender processing fee at settlement?

I did 100% financing and was charge 1200 dollars for a lender processing fee. Someone told me that they are not allowed to charge a lender processing fee. Is this true?

Answer:
Yes they can charge you that, but it should be reflected on your good faith estimate prior to the closing.

Lender's don't charge a processing fee however. Normally they have doc prep, underwriting, tax service, credit report, flood cert. Brokers charge processing but anything over a couple hundred dollars is pretty steep. They are normally the ones who add fees and try to hit you for more at the table.

You can challenge the fee since I'm guessing you already closed. I think you can file a claim with the department of financial institutions in your state.

They can.

They sure can, it is all in the wording used.

As far as I know, they can charge you whatever they want to, as long as you are made aware of it before signing for the mortgage.

Sure they can...but $1200 is high. Which lender is this??

I'm sorry to say yes, they can. It sounds as though this was their work around for offering a Zero points loan and still making a nice commission. Depending on the state you live in though, a "good faith estimate" should have being provided for you to sign prior to closing the loan, if that was not done or if they were deliberately deceiving in the paperwork provided you may be able to fight it. But if you signed the closing documents including the processing fee, you accepted the terms, you may not be able to do anything about it. With the exception of filing a complaint against them, start with www.bbb.org/

They can charge it. There's nothing saying they can't.

Although, the fees should reasonably relate to the work provided, which at $1200, is impossible.

A $1200 processing fee is really high, for a "processing" fee

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Can a mortgage company charge a lender processing fee at settlement?

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