Lender Fees

The Lender Fees module allows a servicer/lender to add and apply various fees to an existing loan. 

Examples include: 

• Closing Fees
• Commitment Fees
• Down Payments
• Non-Sufficient Funds Fees (NSF)
• Origination Fees
• "Other" or "Miscellaneous" Fees
• Admin-customizable lender fee types

These Lender Fees can be a one-time payment a borrower is required to pay or applied as a recurring charge on a periodic (term-by-term) basis. Lender fees can be added or applied throughout the lifetime of a loan either at the start (closing date) or on open pay periods and paid down as part of a scheduled payment or paid down as an unscheduled payment (if there is an existing outstanding lender fee).

To access the Lender Fees module and create a lender fee:

(1) Click on Admin in the menu bar.
(2) Then click on Lender Fee Types. 

To create a new Lender Fee type, click on the "Add Fee Type" button:

Add the data for your Lender Fee. When you are finished, click "Add Fee Type" to save the new Lender Fee type. (Updated: New fields will display, reference updated section at the bottom of this article.)

• Fee Name: This will be the "title" of your lender fee and is what will be displayed for the lender fee options.
• Fee Description: Gives a description of the created lender fee. It is not a displayed value and would only be useful for internal documentation purposes.
• Default Amount: The set amount would be the dollar value assigned to the one-time payment, or a recurrent payment if that's selected.
• Receipt of Proceeds: Designates who will receive the money. 
  • For example: In an escrow account (loan), the amount would go to the servicer. It may also be split between the servicer and lender. Or in an investor situation, the amount can go completely to the lender(s). 
    • Options: 
    • Servicer 
    • Lender
    • Split between Servicer and Lender 
    • Assign payee at application of fee
• Recurring Option: Determines whether the fee will be a one-time payment or a recurring (periodic) payment. 
• Register Account Number: This option helps set a number for the fee type and other associated fees to an account number for the register. This is to help keep track of associated costs or fee types that can be seen on a specific loan's register or on the master register.
• Payment Due: Determines whether to collect payment at closing or for the pay period, or accrue the fees to be paid at a later date.
  • NOTE: If selecting the 'Fee will be due as part of the following scheduled payment', there will be a new field option that prompts titled 'Interest Collection Options'. (Reference image provided below.)
    • Interest Collection Options: You can set the lender fee to charge interest by option for 'follow the note rate' (same as loan's interest rate) or 'custom rate' (custom percentage on lender fee charge). 
      • Note: If selecting custom rate, you'll see another field prompt for entering the custom Fee Interest Rate. 
  • If selecting an Interest Rate collection on a lender fee, you'll need to designate a Register Account Number for interest to keep track of those interest amounts. 

To apply the lender fee to a loan, go to the specific loan you'd like to apply the created lender fee type for. 

Then click on the "Add Lender Fee" button.

On the following screen, select the "Lender Fee Type" you created previously from the drop-down list.

Then enter the date to start charging the fee. If it is at closing, then select the starting date of the loan. If it is a recurring periodic payment, then it is suggested to choose one day, or any day, before the pay period's due date.
After that, enter the amount for the fee if it is different from the default amount.
Finally, click Save to apply the created lender fee to the loan.

The lender fee should then be reflected and is located under the loan's schedule. 

If the fee's "Will this fee be due at payment or accrue?" setting is set to "Fee will accrue", then the fee will not be visible in the schedule of the loan, nor will it be made due as part of any due payment. Instead, it will accrue as an outstanding Lender Fee on the loan's summary page.This outstanding charge can be paid as an unscheduled or as part of a scheduled payment (if already outstanding and the borrower provides funds to cover both the regular scheduled payment and this fee).

From there you'll want to click the 'Edit' button for the lender fee you would like to include on a tax form (far right column titled 'Options'). 

Upon clicking the Edit button, the very last option for the Lender Fee edit options will be titled 'Tax Options'.
You will have the following options:

- None
- Include in 1098
- Include in 1099
- Include in 1098 and 1099 

Once you've selected your preferred option, click 'Save Changes'.
You'll now be able to generate your tax forms with the included Paid amounts for that specific lender fee. You'll need to enable this option for every lender fee you're looking to include.
Refer back to either Batching or the 'Contact - Documents' articles to continue generating your tax forms. That's all for this update.