Section 7: Fees and Charges
7.1 Servicer Fees
The following fees, which may be passed onto the borrower, will be charged by the servicer and deducted from the mortgage loan purchase price:
Please note:
No fees may be charged on the second mortgage (DPA) except recording fees and interest, if applicable.
7.2 Program Administrator Fees
A Code Compliance Review Fee of $225, which may be passed onto the borrower, will be charged by Hilltop Securities (the program administrator).
7.3 Mortgage Loan Purchase Price and Lender Compensation
Mortgage loans originated under the program will be purchased by the department’s servicer.
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Lender Compensation: Total lender compensation for mortgage loans originated in the program will be as follows:
- 1.25% SRP (Service Release Premium) for each FHA, USDA-RD, VA, or Conventional Loan.
- Lenders may collect and retain origination fees from the borrower or seller as allowed by the department’s guidelines.
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Fees: Approved lenders may collect all reasonable and customary fees and closing costs, provided all fees are fully disclosed in accordance with federal, state, and local regulations. Ancillary fees collected by an approved lender may not exceed the amount collected on the approved lender’s similar mortgage loans not sold to the department.
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DPA Second Mortgages: No fees may be charged on DPA second mortgages, except for interest and recording fees if applicable.
7.4 Extension Fees
Approved lenders must close, fund, and deliver mortgage loans to the servicer within 60 calendar days of the date the mortgage loan is locked on the Lender Portal. It is highly recommended that approved lenders provide the borrower with a 45-day lock. Adequate time should be allowed for the servicer to perform a compliance review of the credit loan package to cure any conditions prior to their approval to purchase the loan. Approved lenders may request a one-time extension at the following cost. These fees will be netted out upon loan purchase.