Real estate transactions involving federally related mortgage loans involve three basic categories of services and related charges in order to close escrow. These charges appear on the Uniform Settlement Statement (as defined in 12 U.S.C. § 2603) and include:

(1) title insurance charges in connection with establishing and transferring ownership (i.e., title search and examination fees, premiums charged in connection with issuing a lender’s title insurance policy (including endorsements), and the costs associated with conducting the closing)

(2) amounts paid to the city and/or state and/or local governments for establishing and transferring ownership (i.e., documentary stamp and intangible taxes on both the note and mortgage, including all fees associated with recording the mortgagee’s interest in the property), and

(3) fees associated with originating a new loan (i.e., survey fees, appraisal fees, tax service fees, credit check fees, loan document preparation fees, notary charges, loan origination fees, loan commitment fees, loan processing fees, hazard insurance fees, flood certification fees, interest prepayments, and lender inspection fees). The majority of these services, however, will not be provided and performed until closing.

[ Back ]