What are the licensing requirements?

In order for REMN to close a loan for your company in the State of New York, your company must be either a Licensed (Registered) Mortgage Broker or a Licensed Mortgage Banker with the New York State Department of Banking. There are no “exemptions” or number of loans per year that can be closed by an unlicensed entity, as is the case in many other states.

Are there any exceptions to the above licensing requirements?

No. An unlicensed entity cannot broker any loans in the State of New York.

Does REMN send disclosures directly to my applicant(s)?

Yes. New York Banking Law requires REMN to provide disclosures directly to the applicants. REMN will send a copy of these disclosures to your company for your review, via email or fax. The next business day, they will be mailed to the borrower. If you find any errors during your review, please contact your Account Executive immediately to avoid mis-disclosure.

What extra forms do I need?

Unless you are a banker closing a loan with your own warehouse funds, you must include a the New York Pre-Application Disclosure and Fee Agreement in your application kit. The form must clearly indicate (1) whether you are closing as a Registered Broker or a Licensed Banker acting as a Broker, (2) the amount of the Broker Fee (points paid by borrower) and (3) the amount of YSP paid by REMN to you.

Is there a difference in price?

REMN charges an extra .25% on all New York State properties to pay the lender’s portion of the New York State Mortgage Tax. This applies to all programs offered by REMN.

Am I required to give the applicant a copy of the completed and signed FNMA 1003 Loan Application?

Yes.

What charges should be included on the GFE and TIL my company generates?

(1) Broker Fee, paid by borrower to your company; (2) YSP (0% to 4%), paid by lender to your company; (3) Application Fee (conventional loans only); (4) Processing Fee (conventional loans only); (5) Appraisal and Credit Report Reimbursements (receipt must be furnished to our closing department); (6) New York State Mortgage Tax (as high as 1.75%); (7) $900 REMN Closing Attorney Fee, paid by borrower to the attorney. If loan modification, please see below section “How Can My Borrower Avoid The Mortgage Tax”. (8) $550 Underwriting fee paid by borrower to REMN.Effective for all CLOSINGS on or after May 1, 2009, REMN $550 fee will be charged directly to the borrower. It should be disclosed to the borrower (s) as an “Underwriting Fee.”

Can I collect a fee not on the above list?

No. Unless it is a direct re-imbursement, you cannot charge a fee not on the above list.

What is the maximum Borrower-Paid Compensation allowed?

Five percent (5%) of the “net proceeds” for all loan types with the exception of FHA. NY State Banking Law allows for compensation up to six percent (6%) of the net proceeds on an FHA loan. In all cases, the total includes Security American’s Commitment/Origination Fee and Security American’s Closing Attorney Fee, as well as your company’s Processing and/or Application Fee, the Broker Fee, and the YSP. “Net Proceeds” is defined as the total loan amount LESS all of the charges that compromise borrower-paid compensation.

Can my company issue a Mortgage Commitment or charge a Commitment Fee?

No. Unless you are using your own warehouse funds, you cannot issue a Commitment or charge the borrower a Commitment Fee.

Can my company execute a written Lock-in Agreement or charge a Lock-in Fee?

No. Unless you are using your own warehouse funds, you cannot lock-in a rate or charge the borrower a Lock-in Fee.

Can my company charge the borrower an Origination Fee or discount points?

No. Unless you are using your own warehouse funds, you cannot charge an origination fee or discount points to the borrower.

Who orders title?

Your company is expected to facilitate the ordering of Title. It can be ordered by the applicant’s attorney or the REMN Closing Attorney you selected, whichever you arrange. If it is ordered by the applicant’s attorney, please make sure a copy is sent to Security American’s Closing Attorney (who will review the title) and to REMN.

How can my borrower avoid the mortgage tax?

It cannot be avoided. However, on refinance transactions, New York State allows Consolidation and Modification Agreements, which REDUCE the borrower-paid portion of the Mortgage Tax. The process requires the current mortgage holder’s cooperation and will take at least two weeks. Please contact our Attorney for specific instructions. There will be an additional Attorney charge of $250-$500 for this service.

Who must attend the closing?

A title company representative and our Attorney must both attend the closing.

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