Hello, We are obtaining a loan from a lender we actually never want to work with again and they have a disclosure about "servicing" our

Asked by A M, Los Angeles, CA Mon Mar 11, 2013

loan.. Is this typical?

"Servicing" refers to collecting your principal, interest, and escrow payments, if any, as well as sending any monthly or annual statements, tracking account balances, and handling other aspects of your loan. You will be given advance notice before a transfer occurs. We may assign, sell or transfer the servicing of your loan while the loan is outstanding.
--Shouldn't I want them never to sell the loan? They are also asking for an upfront advance fee of $450.00 for courier, appraisal, etc. Please help! Thank you

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Janey Bishop, Agent, Calabasas, CA
Tue Mar 12, 2013
This is common practice these days for most lenders. The application process is rigorous but once the loan is funded it develops into an easier relationship.
0 votes
Lance King, Agent, San Francisco, CA
Tue Mar 12, 2013
The lender who funds your loan often sells the loan in the secondary market. This is very common. The rate will stay the same, the only thing that will change is the payee. Lenders almost always ask to be paid up front for the appraisal so they don't eat the cost if the buyer doesn't close the deal.
0 votes
SERGEY FEDNOV…, Agent, Beverly Hills, CA
Mon Mar 11, 2013
tHIS IS PRETTY STANDART WORDING AS MOST LENDERS HAVE NO INTENTIONS TO KEEP YOUR LOAND AND USSUALLY SELL THESE LOAND RIGHT AWAY.

AS FAR AS APPRAISAL FEES - THESE ARE USUALLY RESPONSIBILITY OF THE BUYER AND ALSO PRETTY STANDART FEES.

HOPE THIS INFO WILL HELP YOU!
0 votes
carlos parra…, Other Pro, Monrovia, CA
Mon Mar 11, 2013
This is pretty standard language in most mortgages.
The fees can be negotiated and ask for what courier service do they need to pay?
0 votes
Susan Bo'ur, Agent, Manhattan Beach, CA
Mon Mar 11, 2013
This is a very common practice..nothing seems to be out of the norm. I'd be happy to give you my lender's contact info. he would be happy to discuss this with you.
Good luck.
Best,
Susan@SusanBour.com
0 votes
Meredith McK…, Agent, Pasadena, CA
Mon Mar 11, 2013
Both loan servicing disclosures and paying for the appraisal as an upfront fee are typical in the Los Angeles area. Almost all mortgages today are 'sold' to either the government or investors within the first six months after the loan is closed. It is rare to have your lender also be the servicer of your loan, unless you are getting your loan through a 'portfolio' lender.

$450.00 for the appraisal fee is reasonable as an upfront fee.

I'm not certain why you 'actually never want to work with (them) again,' but if it is because of your concern for all your lender costs and fees, you should ask them for an estimated settlement sheet of costs, which they are required by law to give you.

Hope this helps. Good luck with your loan.

Meredith McKenzie
Podley Properties
Pasadena,CA 91101
626.344.9755
arroyolover@gmail.com
0 votes
Ron Escobar -…, Agent, Beverly Hills, CA
Mon Mar 11, 2013
Yes. It is typical. It happens to most loans... all the time... you should be able to trust your loan officer, if you do not trust them why are you doing business with them? and vice-versa...

Ron
0 votes
thank you..it was because the LA stated if I use their lender I would most likely get accepted.
Flag Mon Mar 11, 2013
Search Advice
Search
Ask our community a question

Email me when…

Learn more