Posted on: 25th Dec, 2013 10:40 pm
I want to clarify if it is legal to reimburse the borrower for the closing costs after the closing is complete?
Hi Jaykil,
Well, it should be noted that the general rule is to give a credit to the borrower at closing. However, in order to know reimbursement rules in respect to a borrower after closing, you will have to check your state regulations.
Take care
Well, it should be noted that the general rule is to give a credit to the borrower at closing. However, in order to know reimbursement rules in respect to a borrower after closing, you will have to check your state regulations.
Take care
Hi Jaykil!
Welcome to the forums!
I agree with what Sara has said. You need to check out your state regulations for this.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
I agree with what Sara has said. You need to check out your state regulations for this.
Feel free to ask if you've further queries.
Sussane
Are you asking if you can take away money at the table? If so, the answer is NO. Most lenders cap the take away at $100. If the overage of the lender paid compensation is above the closing costs.
It is not legal to reimburse closing costs after closing.
The lender can pay for closing costs from the yield premium they receive from the loan rate/pricing. That is done at closing and disclosed on the HUD-I Settlement Statement at closing.
The lender may not reimburse anything after closing that is not disclosed on the HUD -I and the HUD-I is at closing, not after.
The lender can pay for closing costs from the yield premium they receive from the loan rate/pricing. That is done at closing and disclosed on the HUD-I Settlement Statement at closing.
The lender may not reimburse anything after closing that is not disclosed on the HUD -I and the HUD-I is at closing, not after.
