Closing Costs and Other Fees

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Chapter 2
Mortgage Credit Guidelines
Page 2-15

Mortgage lenders may collect from the borrower those customary and reasonable costs necessary to close the mortgage. Lenders are reminded that aggregate charges may not violate FHA’s tiered pricing rules and that all charges must be properly disclosed to the borrower(s). However, borrowers may not pay a tax service fee nor may the lender collect an origination fee greater than one percent on forward mortgages (plus the supplemental origination fee on Section 203(k) rehabilitation mortgages), nor more than the greater of $2,000 or two percent of the maximum claim amount on Home Equity Conversion Mortgages (HECM).

Please see: Mortgagee Letters 2006-04 and 2006-07.