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Fee Configuration

This guide explains how to configure fees and fee templates in ReversePilot for different loan products and states.

Overview

Fee configuration in ReversePilot allows administrators to:

  • Create fee templates for standard fees
  • Configure fees by state
  • Set fee tolerances for Good Faith Estimate (GFE) compliance
  • Automatically populate fees when creating loans
  • Manage origination fees at the product level

Fee Templates

Fee templates are reusable fee configurations that can be applied to loans automatically.

Creating Fee Templates

  1. Navigate to Admin > Fee Templates
  2. Click "Create Fee Template"
  3. Enter fee information:

Required Fields

  • Name: Fee name (e.g., "Appraisal Fee", "Title Insurance")
  • HUD Line: HUD line number for closing disclosure
  • Amount: Default fee amount
  • Tolerance: GFE tolerance (0%, 10%, or Unlimited)

Optional Fields

  • Payee: Default payee name
  • States: States where this fee applies (leave empty for all states)
  • Is Finance Charge: Whether this is a finance charge
  • Exclude from Wire: Whether to exclude from wire transfer
  • Is Shoppable by Borrower: Whether borrower can shop for this service

Fee Tolerance

Tolerance determines how much the final fee can vary from the GFE:

  • 0%: Final fee must match GFE exactly
  • 10%: Final fee can vary up to 10% from GFE
  • Unlimited: No tolerance restriction

State-Specific Fees

To create state-specific fees:

  1. Create fee template
  2. Select specific states in States field
  3. Set state-specific amounts
  4. Template will only apply to loans in those states

Product Origination Fees

Origination fees can be configured at the product level:

Setting Product Origination Fee

  1. Navigate to Admin > Loan Products
  2. Select the product
  3. Enter Origination Fee amount
  4. Save

How It Works

  • Origination fee is automatically created when a loan uses the product
  • Fee amount comes from product configuration
  • Can be adjusted per loan if needed
  • Updates to product fee don't affect existing loans

Automatic Fee Population

When a loan is created, fees are automatically populated from:

  1. Fee Templates: Matching templates for the property state
  2. Product Configuration: Origination fees from loan product
  3. System Defaults: Standard fees for HECM loans

Fee Sync Service

The system automatically syncs certain fees:

  • IMIP Fee (HUD Line 902): Calculated based on loan amount
  • Origination Fee (HUD Line 801): From product configuration

Fee Categories

Origination Fees

  • Origination Fee (801): Loan origination charge
  • Processing Fee: Loan processing charge
  • Underwriting Fee: Underwriting charge

Third-Party Fees

  • Appraisal Fee: Property appraisal
  • Credit Report Fee: Credit report charges
  • Flood Certificate Fee: Flood zone determination
  • Title Insurance: Title insurance premium
  • Recording Fees: Government recording charges

Government Fees

  • Transfer Taxes: State/local transfer taxes
  • Recording Fees: Document recording fees
  • Other Government Charges: Additional government fees

Prepaid Items

  • Homeowners Insurance: Insurance premiums
  • Property Taxes: Property tax payments
  • Initial MIP (902): Upfront mortgage insurance (HECM)

Managing Fees on Loans

Viewing Fees

  1. Navigate to loan application
  2. Go to Fees section
  3. View all fees for the loan
  4. See fee details, amounts, and tolerances

Editing Fees

  1. Click on fee to edit
  2. Update amount, payee, or other details
  3. Save changes
  4. System validates tolerance compliance

Adding Custom Fees

  1. Click "Add Fee"
  2. Enter fee information
  3. Select HUD line number
  4. Set amount and tolerance
  5. Save

Deleting Fees

  1. Click on fee
  2. Click "Delete"
  3. Confirm deletion
  4. Note: Some fees (like IMIP) are automatically managed

Fee Compliance

GFE Tolerance Rules

Fees must comply with GFE tolerance rules:

  • 0% Tolerance: Must match exactly
  • 10% Tolerance: Can vary up to 10%
  • Unlimited: No restriction

HUD Line Numbers

Standard HUD line numbers:

  • 801: Origination Fee
  • 802: Credit Report
  • 803: Appraisal
  • 804: Flood Certificate
  • 805: Title Services
  • 902: Initial MIP (HECM)

Best Practices

  1. Create Templates: Use fee templates for standard fees
  2. State-Specific: Configure state-specific fees as needed
  3. Regular Updates: Update fee amounts regularly
  4. Document Changes: Document fee changes and reasons
  5. Compliance: Ensure fees comply with regulations

Common Fee Scenarios

Standard HECM Fees

  • Origination Fee: Typically 2% of principal limit
  • Initial MIP: 2% of maximum claim amount
  • Appraisal: Varies by location
  • Title Insurance: Varies by state and loan amount

State Variations

  • Some states have maximum fee limits
  • Transfer taxes vary by state
  • Recording fees vary by county
  • Title insurance rates vary by state

Troubleshooting

Fees Not Populating

  • Verify fee templates are created
  • Check state configuration
  • Ensure loan product is configured
  • Verify user permissions

Fee Amount Issues

  • Check fee template amounts
  • Verify product origination fee
  • Review fee calculations
  • Check for manual overrides

Tolerance Violations

  • Review GFE tolerance rules
  • Check fee tolerance settings
  • Verify final fee amounts
  • Adjust if needed

Next Steps

For questions about fee configuration, contact your administrator.