Home Buying in 32828>Question Details

Jennifer Fer…, Home Buyer in 32836

Why is my "mortgage advisor" (recommended by my Realtor) including a "realtor fee" on my GFE?

Asked by Jennifer Fernandez, 32836 Sat Mar 20, 2010

I've read online quite extensively on common fees on the GFE, but I can't find anything about a "realtor fee".

Help the community by answering this question:



Why are you being charged that fee to begin with? I personally would never pay that fee.

In fact, the realtors partners I refer my pre approved buyers to in your area will actually pay for my buyer's closing costs!

Click on this US Dept of Justice website: http://www.justice.gov/atr/public/real_estate/commission_table.htm

Google search: Florida Realtor Rebates

YouTube search: Florida Realtor Rebates

Email me a copy of that GFE at: Stve@pro-option,com and I'll send you a realtor GFB (Good Faith Bid) so you can shop around for your best overall deal.

My realtor partners offer a buyer's agent credit on a $250,000 purchase price of up to $4,000 can be used for rate reduction to help qualified buyers obtian rates in the 2.00% range.

Steve McRory
Pro Option Mortgage
Ph: 888 662 4404
1 vote Thank Flag Link Fri May 18, 2012

Now that you have clarified that you are just getting a loan pre-approval, your mortgage advisor can't provide you with an accurate GFE until you can provide him/her the following per the new rules (Note: this is by no means the complete explanation of all the new rules that apply to GFE's):

Lenders must provide a GFE within 3 days of customers making application for a loan and these elements are necessary for a mortgage application and require the lender to issue a GFE: 1) brorowers name; 2) loan amount; 3) monthly income; 4) credit score; 5) propeerty address; 6) estimated property value; 7) social security number. The lender is bound, within certain tolerances, to the fee amounts that appear on the GFE for 10 business days after issuing the GFE or when the borrowers agree to proceed with the loan application, which ever comes first.. During the shopping phase, changed circumstances (i.e. loan amount, subject property address, etc.) may occur that permit the lender to issue a revised GFE. Lenders can restate or reissue a new, binding GFE only if changed circumstances are associated with the application. If changed circumstances are associated with the application and there is an increase to the fees related to the change, the lender must reissue the GFE within 3 days if the lender wants to rely on the new estimate.

Since it appears that you may be in the beginning stages of your home purchase process, unless your Realtor has told the mortgage advisor that a "realtor fee" will be charged, then I really don't know why a mortgage advisor would indicate such a fee on a preliminary GFE. Normally this would be referred to as a "transaction fee" . If you are being charged a "transaction fee" by your Realtor or Realtor's Broker, they must advise you upfront what services are provided for this fee which is above and beyond their earned commission. While I personally feel that transaction fees are not warranted, I continue to see where some Realtors are charging them and what I really object to is when a listing agent/broker requires the buyer's agent or the buyer to pay such a fee.

This is probably more information than you were looking for, so I will come to a conclusion hereby saying again, you should speak with your mortgage advisor and Realtor about your concern, after all, they stand to lose a good customer if you are not provided with a satisfactory explanation.

Thank you for looking to Trulia.com for answers to your questions.

Suzanne Ogden, Realtor
Charles Rutenberg Realty
(407) 234-1098
Web Reference: http://www.suzanneogden.com
1 vote Thank Flag Link Sat Mar 20, 2010
Yes, I see the "fee" charged all the time. I even had an offer on one of my listings and the buyer's Real Estate firm would get paid over $18k yet they wanted their client to pay them an "extra" $295. Truly absurd.
0 votes Thank Flag Link Fri May 18, 2012
Hello Jennifer,

The fee you are talking about is probably a processing or Administrative fee.
You should check with your loan officer to see why it was put on the GFE. Also
check with the Realtor involved and ask if they have this fee with their contract.
Good luck on your purchase.

John Forrester PA
0 votes Thank Flag Link Sun Mar 21, 2010
Wow this is getting a few good responses, I've never been able to validate any extra fee's in my business world and in some states courts are deciding if these fees are on the up and up based on are there any extra services being performed for the buyer or seller.

Although some RE companies have been doing this all along we are seeing more today due to the downturn in sales, got to keep that national advertising going or that out of date storefront open.

Real Estate is changing daily through the internet with websites like Trulia leading the way by connecting buyers and sellers with agents. This connection is giving the independent 'mom and pop' real estate companies a chance to compete once again and without fee's.

Hope this helps,
Web Reference: http://OrlandoHomeStore.com
0 votes Thank Flag Link Sun Mar 21, 2010
well done Jen. Now you can choose a Brokerage that does not charge buyers. THere are even some that will help you out witjh closing costs paid by the seller or the Brokerage. It is good to ask and it is good to shop around.
0 votes Thank Flag Link Sat Mar 20, 2010
ok, that's good news....did you sign a contract? I often see wording added to contracts by certain well-known real estate firms that charge a miscellaneous garbage fee from the seller or buyer automatically.
0 votes Thank Flag Link Sat Mar 20, 2010
*More information* I have not signed any agreements with the Realtor. This GFE was part of a pre-approval. I have not signed a contract with anyone for anything.
0 votes Thank Flag Link Sat Mar 20, 2010
Oh, make sure your "mortgage advisor" is working for your best interests. You can instantly verify you are paying the lowest rate and fees by comparing other Direct Lenders. Try:

http://www.AimLoan.com (only if you're not getting an FHA with 3.5% down)

or http://www.ThirdFederal.com
0 votes Thank Flag Link Sat Mar 20, 2010
Hi Jen,

Some Real Estate firm (even large nationwide ones) extract "extra" fees from buyers. The commission they receive should be sufficient but because of pure greed these corporations will attempt to collect another $250 to $300 from an unsuspecting buyer or seller. You probably already signed a form authorizing them to overcharge you this fee.

Contact your Realtor immediately and tell her you want to dispute this possibly illegitimate charge. We have new rules that prohibit arbitrary "garbage" fees to buyer and sellers and hopefully if you question the fee, they will remove it!
0 votes Thank Flag Link Sat Mar 20, 2010
some good answeres here. It is most likely a Brokerage transaction fee. Not all RE agents are realtors. and Realtors do not charge fees . It is the realtors Broker that may be charging the transaction fee if you have agreeed to one. Look around. Not all Real Estate Brokerages charge a transaction fee. You may want to hook up with a Brokerage that does not charge their buyers any fees.
0 votes Thank Flag Link Sat Mar 20, 2010
I suggest that you read your Purchase Agreement again. Some brokers are charging a transaction fee or document fee for using their realtor and their brokerage. When Buyers & Sellers are concentrating on the numbers, dates, contingencies, etc., it's easy to overlook that clause.
0 votes Thank Flag Link Sat Mar 20, 2010

You really should be questioning your Realtor or mortgage advisor about this fee. If it is a transaction fee charged by your Realtor or the listing Realtor, this must be disclosed to you at the time you made the offer. Otherwise, it could just be your mortgage advisors policy to do this in view of the new legislative changes that recently came into effect for the mortgage industry. Basically, with the new regulations, if your final closing statement shows a higher amount than the GFE, the mortgage broker may have to absorb the difference.

Thank you for looking to Trulia.com for answers to your question.

Suzanne Ogden, Realtor
Charles Rutenberg Realty
(407) 234-1098
Web Reference: http://www.suzanneogden.com
0 votes Thank Flag Link Sat Mar 20, 2010
I think this must be some sort of transaction fee (administration fee) paid to the brokerage. I would call your lender and question it! Good luck!


Maggie DeGennaro
Stirling Sotheby's International Realty
0 votes Thank Flag Link Sat Mar 20, 2010
thats good you asked its beatter for everything to be out in the open then to have to deal with it later
0 votes Thank Flag Link Sat Mar 20, 2010
Fee splitting of any kind is not allowed, nor is any kind of payment for referring the client for a loan. The big problem is that all loan officers are so scared about under-disclosing, and being forced to pay more than their commission because they omitted something, that they are overdisclosing. Some lenders are taking the position that transfer taxes, although the responsibility of the seller on all but new construction, foreclosures and short sales, if not disclosed, will have to be paid by the loan officer. Does the realtor fee equal the commission that the realtor will earn? If that is not the case, and you get charged that at the closing, I would report the loan officer to the state banking department.
0 votes Thank Flag Link Sat Mar 20, 2010
hopefully it is a "transaction" fee charged by the real estate company. It would be a violation of RESPA for the mortgage broker to give a kickback or referral fee to the realtor
0 votes Thank Flag Link Sat Mar 20, 2010
This could be the processing fee aka tranaction fee, etc. I would question them about this....
0 votes Thank Flag Link Sat Mar 20, 2010
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