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Understanding Mortgage Broker Fees - Is This a "Junk Fee" or Not?

Mortgage shoppers seem to get confused by closing costs on a regular basis. No fee is more confusing than the "mortgage broker fees" entry on a Good Faith Estimate.

So is a mortgage broker fee a "junk fee" or is it a legit fee?

Well it is not that simple...so the short answer is "It depends"...

To get the full answer click on the link and read all about it in our recent post

....Mortgage Broker Defined.

Posted by Rob K. Blake, "The Mortgage Insider" on 08/26/2009 07:54 PM

Comments (2)

Mortgage Brokers in the Mortgage / Finance Channel

mortgage broker, closing costs, fees

Post is included in group: Realtors®
Post is included in group: Mortgages

2 Comments on Understanding Mortgage Broker Fees - Is This a "Junk Fee" or Not?

AUG

Rob: I think as long as the GFE is explained and the broker isn't excessive with their fees, the customer will be o.k. with it. Everyone has their underwriting fee, processing fee, admin. fee, etc. We have an admin. fee which helps pay the salaries of my underwriter and processor. I've never had any objections. In the old days, some brokers would charge fees upon fees. Now that everything has to be disclosed, I think excessive fees have mostly gone by the wayside. Thanks for the post!

SEP

Paul,

I actually wrote the post...but I understand why you posted your comment here.

Let me respond by saying, the typical mindset I run into with consumers is either an "ignorance is bliss" or the polar opposite "every cost is a junk fee".

Of course both are equally dangerous to the consumer. I thought my post could address both mindsets and correct the problems with both.

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