OK folks, sorry about this but I felt compelled to try and get an answer as to why some lenders do what they do. 

Why is that some lenders want to be in charge of both sides of a transaction in addition to working the loan? Here's the scenario.

After the third missed closing date on a listing, my seller required the buyer use another lender or the closing date would not be extended again. The buyer agreed.

As often happens, the new lender called and explained how she was different than others, that she had been in business since dirt was formed and she would get this closed without any issues. Blah, blah, blah...same song, different verse. My client allowed her about three weeks to prove herself.

Ms. Lender calls one day to tell me the closing date had been moved up. I'm sorry Ms. Lender, I didn't realize you were with the government and could now change the terms of a contract in which you're not even named. Due to the previous lender's performance, my client respectfully declined to allow Ms. Lender to start moving the closing date without so much as an email or phone call with anyone on our end.   

Then Ms. Lender calls to say that she had scheduled the closing for all parties and wanted to be sure my client knew what time she needed to be at the title company to sign documents. What? Since when does a lender schedule my client for a closing without my client's input. I simply laughed and told Ms. Lender that my client will let me know and I will let Ms. Lender know where and what time my client will be closing her side of the transaction. Ms. Lender wasn't happy with that answer.

Finally, as the closing date arrives, I received the HUD-1 and find a $240 charge to my seller for services of the lender's attorney. I immediately told the title company to remove the charge from my seller's side of the HUD. The lender's response was, "we always charge this." Sorry Ms. Lender, not this time. As if that bravado wasn't enough, Ms. Lender insists I (as listing agent) execute the FHA documents (Amendatory Clause and Real Estate Certification) and Ms. Lender also said she requires my client sign a Certification stating the home is not in a flood hazard area (the buyer chose to use the existing survey from 1994). Oh, and the seller must also sign several other lender documents per Ms. Lender.

I have yet to understand what makes some lenders feel they have the right to charge fees for services not rendered to a party and to intentionally place liability on a seller by "requiring" the execution of documents that have nothing to do with the seller side of the transaction. 

The bottom line is this. I wasted many hours of my time arguing with the lender over the charges and documents when this should have been a non-issue from the very beginning. Fortunately neither I or my client chose to play along and we still closed as planned without increasing her liability.

If anyone has insight into this, please let me know. It just seems like an awful waste of  time and energy.