Can a borrower be charged an Administrative Fee by the real estate broker on an FHA loan?

The lender must ensure that all fees charged to the borrower comply with all applicable federal, state and local laws and disclosure requirements.  

If a borrower is represented by a real estate agent and must pay any fee directly to the agent, that expense must be included in the total of the borrower’s settlement requirements. 

For additional information see Handbook 4000.1 II.A.4.d.i.(B)(2)(f); II.A.5.c.i.(B)(2)(f); II.A.6.a.x. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04505