Mortgage Broker Fee Agreement Form PDF Details

When individuals seek to secure a mortgage, understanding the terms and conditions of the financial arrangements, including any fees payable to the mortgage broker, is crucial. The Mortgage Broker Fee Agreement and Disclosure form serves as a fundamental document in this process, clearly outlining the agreement between the borrower(s) and the mortgage broker regarding the fees for the mortgage origination. This comprehensive agreement covers everything from the prohibition of charging upfront fees, aside from a reasonable credit report fee before certain conditions are met, to the detailed description of the services the mortgage broker will provide. The form highlights how mortgage broker fees can be paid by the borrower either directly or through the loan proceeds or by opt for a higher interest rate where the lender covers these costs. It emphasizes the importance of the Good Faith Estimate (GFE) in understanding other related closing costs and specifies how the broker's compensation is determined and the maximum fee the borrower is expected to pay. Above all, this agreement underscores the transparency and thoroughness required in the financial dealings between a borrower and a mortgage broker, ensuring all parties have a clear understanding of their obligations and the structure of the mortgage loan being arranged.

QuestionAnswer
Form NameMortgage Broker Fee Agreement Form
Form Length1 pages
Fillable?No
Fillable fields0
Avg. time to fill out15 sec
Other namesGFE, Mortgage, ca loan brokerage agreement, iii

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Mortgage Broker Fee Agreement and Disclosure

This Mortgage Broker Fee Agreement and Disclosure ("Agreement") is by and between______________________, a mortgage

broker ("we,""us,""our") and the borrower (s) below ("you, " "your") This Agreement discloses and governs the overall fees that will be paid to your mortgage broker for the origination of your loan, and this Agreement represents the entire agreement between you and us.

NOTE ABOUT UP-FRONT FEES: You may not be charged any fee, other than a reasonable credit report fee (if applicable), prior to (i) receiving your Good Faith Estimate ("GFE") from us, (ii) expressing your intent to proceed with the loan transaction, and (iii) receiving the initial disclosures from the mortgage lender.

OUR SERVICES: A mortgage broker charges fees to arrange a loan from a mortgage lender that will fund the loan. As your mortgage broker, we will assist you in obtaining a loan. We do not offer products from all mortgage lenders, so we cannot guarantee you this loan product and terms we arrange for you. By signing below, you request us to arrange a mortgage loan from a mortgage lender and you agree to the fees listed below for our services.

YOUR MORTGAGE LOAN: You are currently applying for a mortgage loan in the amount of $_____________, your fees may increase

if the loan amount increases, or decrease if the loan amount decreases. The fees in this Agreement are for mortgage broker services and do not include other closing costs or credits from us or other parties for non-broker related services. Please refer to your GFE for other fees related to the settlement of your loan. Once your interest rate is locked and your loan amount and terms are finalized, we will be able to tell you the exact amount of all fees, including our fees in addition to our fees, estimates of other fees you will pay in connection with your loan will be shown on your GFE.

Our fees may be paid by either you or paid by the mortgage lender, but not by both.

BROKER COMPENSATION PAID BY YOU: Depending on the loan program, you select and subject to applicable legal requirements, our fees may be paid by you directly from your own funds at or prior to the loan closing; you may also elect to include our fees in your loan amount and pay us at closing out of your loan proceeds. If you choose to pay the fees out of the loan principal, your principal amount will increase (unless the loan amount quoted already includes our fees), and you will pay interest on this increased amount over the life of the loan.

BROKER COMPENSATION PAID BY MORTGAGE LENDER: Instead of paying our compensation directly, you may pay our fees by electing to pay the mortgage lender higher interest rate, and the mortgage lender will then pay us. When you elect to pay a higher interest rate, you will not pay us anything directly prior to or at closing. Paying our fees directly may result in a lower interest rate but higher costs at closing. The amount of our fee does not change based on the interest rate of the loan.

By signing this Agreement, you acknowledge that we have discussed these fee payment options with you.

Broker compensation paid by YOU*

MAXIMUM BROKER FEE: This amount represents the total of all fees that are paid to us directly By you for arranging your loan with a mortgage lender. This amount is included in "Our Origination Charge" of Block 1 of your GFE. The amount listed as "Our Origination Charge" on your GFE may be greater than the Maximum Broker Fee shown here, as the total "Our Origination Charge" may also contain other origination charges and fees for your loan from the mortgage lender and other third parties as applicable.

____________________

Must be completed with Fixed dollar amount or percentage of loan amount

Broker compensation paid by the Mortgage Lender*

MAXIMUM BROKER FEE: This amount represents the total of all fees that are paid to us by the

____________________

mortgage lender for arranging your loan with that mortgage lender. This amount is included in "Our

Origination Charge" of Block 1 of your GFE. The amount listed as "Our Origination Charge" may also

Must be completed with

Fixed dollar amount or

contain other origination charges and fees for your loan from the mortgage lender and other third

percentage of loan amount

parties as applicable.

 

CREDIT FOR BROKER FEE FROM THE MORTGAGE LENDER: This amount represents the credit to you

 

from the mortgage lender for the purpose of the lender's payment of our fee. The total amount of the

 

mortgage lender credits as noted in Block 2 of your GFE may be greater, but will not be less than this

 

amount because Block 2 credits may be applied to other non-mortgage broker fee settlement costs.

____________________

Until you lock your interest rate the amount of the total Block 2 credit may change. Please note that

Must be completed

changes to your interest rate do not affect the amount of our fee.

 

 

 

*If the method of paying our compensation changes before loan closing, a new copy of this Agreement is required. You will also receive a new GFE and other loan disclosures in this case. Please note that a change in the method of paying our compensation may delay your loan closing.

Borrower: ___________________________________

Co-Borrower: _________________________________________

Signature: ___________________________________

Signature: ____________________________________________

Date:_________________________

Date: _________________________

Broker Name: ___________________________________

Loan Originator Signature: _______________________________

Revised (8/23/11)

MSI PROVIDES THIS DOCUMENT AS A SAMPLE ONLY. PRIOR TO USING …

PLEASE CONFIRM WITH A LEGAL REPRESENTATIVE THAT THIS DOCUMENT MEETS ALL STATE/LOCAL REQUIREMENTS FOR YOUR USE.

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Completing this document demands attentiveness. Make certain every field is filled in accurately.

1. Fill out the lenders with a selection of necessary fields. Note all of the important information and ensure there's nothing missed!

Stage number 1 in filling in Agreement

2. The next part is usually to submit the next few blanks: By signing this Agreement you, Broker compensation paid by YOU, MAXIMUM BROKER FEE This amount, Must be completed with Fixed, percentage of loan amount, percentage of loan amount, Must be completed with Fixed, MAXIMUM BROKER FEE This amount, and Must be completed.

The right way to fill in Agreement step 2

3. This next segment will be focused on MAXIMUM BROKER FEE This amount, Loan Originator Signature, Signature, CoBorrower, Date, Revised, MSI PROVIDES THIS DOCUMENT AS A, and PLEASE CONFIRM WITH A LEGAL - complete every one of these blanks.

How one can fill out Agreement portion 3

When it comes to Revised and CoBorrower, make sure that you take a second look in this current part. The two of these are the most significant fields in this form.

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