Today’s FHA loan is not your father’s FHA loan!

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 Can a Buyer Broker Fee be charged to an FHA loan?  Yes.

The HUD HANDBOOK 4000.2 REV-3 – 51L – Real Estate Broker’s Fees (Buyer Broker) [http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4000.2/40002hbHSGH.pdf] as issued May, 2004 is attached hereto.  I suggest you read it.  The Handbook instructs that borrower may be charged real estate broker fees.  However, the borrower must engage broker independently and the fee must be “reasonable and customary.”  Unearned fees are not permitted, unless a service is actually performed.  As you are all aware the amount of commission charged and paid is not an industry standard per NRS 598A.060; 15 U.S.C. § 1–7.  The historic goal of antitrust laws has been to protect economic freedom and opportunity by promoting competition in the marketplace.  [See blog on commission https://ameglegal.wordpress.com/category/commissions/]  Significant opportunity relates to the ability of real estate brokers to successfully charge and collect certain administrative fees or commissions in transactions with affiliated lenders.

Would this rule allow for what is commonly referred to as Transaction Fees or  Administrative Fees?  Yes.  The rule allows buyer broker fees if “reasonable and customary,” therefore if a buyer broker fee agreement specifies that the broker is engaged and will provide specific services in consideration of a fee the FHA rules allow the charge of a Transaction Fees or Administrative Fees.  Prudential®, Americana Group, REALTORS® Broker Administrative Fee [Americana Doc Fee Invoice] is the result of is a focus as each transaction has a great volume of paper and individual importance.  The Americana Broker Administrative Charge is assessed by Prudential, Americana Group, REALTORS® to its buyer and seller clients in exchange for real estate services provided and actually performed. [Doc Fee Explanation] The Fee is the result of the client engaging Americana for these services and is in excess of the listing, cooperative and/or buyer broker commissions typically paid by sellers and buyers.  It is a form of commission for the real estate services provided by Americana for a buyer and/or seller.  It is for services actually performed and is the result of the client engaging Prudential®, Americana Group, REALTORS®.

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