Our phone number has changed. Please update your records to 269.360.7109. Thanks!

Agent Admin Fees – Rural Development

Update!!!!!

If you have seen some of the other information I put out on this in recent month then you know that RD no longer allows Real Estate Agent Admin fees (just like the VA). In the guidelines that had been published RD simply said it’s not an allowable fee.  Good news for agents we recently found was that by saying ‘not an allowable fee’ they mean that the fee can neither be financed into the loan or paid with seller concessions, but that if the borrower paid the fee out of pocket it could be charged.

The key is in the definition of unallowable fees.  What this means to you?

If the Realtor Admin Fee is charged then the borrower’s bottom line must reflect as much.  Examples:

  • If the borrower gave no earnest money deposit and seller concessions covered all other fees then the borrower’s bottom line at closing would be the amount of the Realtor Admin Fee.
  • Tax proration’s can be used to offset the charge.
  • If the borrower gave a $500 earnest money deposit and the Realtor Admin Fee is $300 then the expectation would be the borrower would get just $200 back at closing.  Thus using their own funds to pay the fee (assuming the seller is paying all the other closing costs).

Bottom line, if you typically charge an admin fee I would throw it on there and see what happens!

Spread the love

Latest Blog Post

October Lunch and Learn: Unconventional Lending In An Unconventional Market

1 Hour Con Ed Credit Available!

The real estate market is constantly changing, leading to many challenges for buyers and sellers alike.  Never has there been a greater opportunity to leverage innovative lending solutions to better serve your clients.  As you know we think outside of the box.  Yes we do lots of loans that fit in the box, but getting the deals done that don’t fit in the box can make all the difference in this market.  During this class we will cover some more unique loan programs and ways to structure transactions to help get offers accepted in an unconventional world.  This class is approved for 1 hour of continuing education thank you Devon Title for sponsoring the continuing education portion of this event!

Hot Topics We Will Cover

Here is a list of some of the things we will cover during the event:

Spread the love
Visit Jeremy's Blog

Featured Video