Schedule of Borrower Fees
Important: All fees noted below are subject to federal and state guidelines, restrictions, and/or limitations.
Celink’s servicing platform is designed to ensure that the servicing fees, as well as all other fees noted below, are charged to the borrower on behalf of Celink’s clients meet the client guidelines, federal and state regulations, the loan documents, and other applicable requirements, in accordance with Celink’s agreement with the client. The fees that Celink collects on behalf of its clients depend on the type of the mortgage program selected by the borrower, client guidelines, and other applicable requirements.
Home Equity Conversion Mortgages (HECM)
For FHA-insured Home Equity Conversion Mortgage (HECM) loans, the following fees may be charged to borrower’s unpaid principal balance during loan servicing:
Servicing Fee: A monthly servicing fee of no more than $30.00 may be charged if the HECM loan has an annually adjusting interest rate and $35.00 if the interest rate adjusts monthly. A monthly servicing fee of no more than $30.00 may be charged in connection with fixed rate HECM loans.
Repair Administration Fee: A Repair Administration Fee not exceeding the greater of one and one-half percent (1 1/5%) of the amount advanced for the repairs or $50.00 may be charged if repairs to the property are required after loan closing in order to meet HUD requirements, in accordance with the Repair Rider.
Payment Plan Change: A fee of up to $20.00 may be charged if the borrower switches from one HECM payment plan to another (the borrower’s Principal Balance must be less than the Principal Limit).
On-Going Mortgage Insurance Premiums (MIP): The borrower will be charged a monthly MIP that equals 1.25% of the loan balance (for loans with case numbers assigned on or after October 4, 2010 and loans with case numbers assigned on or before October 3, 2010 if the borrower has converted to HECM Saver or HECM Standard). The borrower will be charged a monthly MIP equal to 0.5% of the loan balance if the case number was assigned on or before October 3, 2010 and the borrower did not convert to HECM Saver or HECM Standard.
Property Charges: Under the terms of the loan documents, HECM borrowers are required to pay charges for real estate taxes, ground rents, flood and hazard insurance premiums, and special assessments in a timely manner. Under certain circumstances, if the borrower fails to pay the property charges in a timely manner and has not elected to have the lender make these payments, Celink may make payments for such property charges and add them to the unpaid principal balance.
Other Fees and Charges. Under certain circumstances, Celink may collect certain reasonable and customary fees and charges for services rendered after endorsement by adding them to the loan balance, including the following:
- Charges for substitution of a hazard or flood insurance policy (at a time other than the normal time for renewing the hazard insurance policy).
- Attorney and trustee fees and expenses actually incurred when a case has been referred for foreclosure or deed-in-lieu of foreclosure (including the cost of appraisals and cost of advertising).
- A trustee’s fee in deed-of-trust states for execution of a satisfaction, release, or trustee’s deed when the deed of trust is paid-in-full, if the security instrument provides for such fee.
- Attorney’s fees and expenses actually incurred in the defense of any suit or legal proceeding when the mortgagee is made a party by reason of the mortgage, if the security instrument permits such fee.
- Certain property inspection and preservation expenses.
- Required property appraisals at the time that a loan is called due and payable, or in preparation of a foreclosure sale.
- A fee for recordation of a satisfaction of mortgage, unless recordation is the responsibility of the mortgagee.
- Certain fees and charges related to the execution of additional documents to extend the first lien status and related title search costs.
Proprietary Reverse Mortgages
The fees that Celink may collect from borrowers during the servicing of proprietary reverse mortgage loans are based on the loan program and the lender’s specifications, and may include, without limitation: monthly servicing fees, repair administration charges, property inspection and preservation charges, and costs and expenses incurred in pursuing foreclosure (including attorney’s and trustee’s fees and expenses).