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and Charges Private Lending
Our charges for the services
we provide in our Fidelity Lending Program depend on
the level of services the lender chooses. The fees are
paid at closing on the loan and may at the lender’s
option, be rolled into, made a part of, and paid as
part of the loan.
The lender normally requires
the borrower to reimburse our fees, with reimbursement
and payment of our fees occurring simultaneously at
closing on the loan. The fees can be paid by the borrower
from the loan proceeds at closing. For example, if the
borrower needs $100,000 in loan proceeds for his transactional
purposes, he/she may need to obtain a loan in the total
amount of at least $100,599 (if option #2 services are
chosen) to provide for enough money for transactional
purposes and payment of our fees.
The different levels
of service that we provide, and the fees associated
with each level of service, are generally described
as follows:
Option 1: $549.
Loan Documentation/Recordation Functions Only.
We would provide a legally compliant loan closing package
of documents, complete with the promissory note and
financing instruments a lender determined to use. We
would record any financing instruments required to be
recorded in the public records.
Option 2: $599.
Option 1 Services, Plus Basic Loan Servicing Services.
In addition to loan documentation/recordation services,
we would set the borrower and lender up on a loan servicing
platform, which would provide for electronic processing
of payments from the borrower to the lender. All payments
would be set up to occur electronically through ACH;
however, either party may elect to process their payments
by bank draft, in which event they will pay us $20 per
check processed to cover bank processing costs. We would
provide for the lenders and borrowers with prompt payment,
payoff and other reports, including year end tax reporting,
detailing interest income and mortgage interest expense.
Option 3: $999.
Option 1 and 2 Services, Plus Escrow Account Management
Services. In addition to loan documentation/recordation
services and basic loan servicing services described
in options 1 and 2, we would analyze escrow requirements
for taxes, insurance and other items, and we would provide
for collection, payment and reporting on these items
for both the lender and the borrower. As with all other
reporting, both the lender and borrower would be able
to monitor escrow arrangements through our system.
Option 4: $1,499.
Option 1 and 2 Services, Plus Search for Title Defects.
In the event the underlying real estate transaction
associated with the loan was not otherwise provided
for, in addition to loan documentation/recordation and
basic loan servicing services, we would provide a standard
title search, judgment and lien search, municipal lien
certification, prepare property transfer documentation
and record land transfer documentation.
Option 5: $1,999.
All of the Above Services, Plus Closing Services.
We would provide all services described in options 1-4,
plus, at lender’s option, either provide detailed
and specific closing instructions to a closing agent,
or act as closing agent, preparing a settlement statement,
providing for the collection and payment of all taxes,
municipal charges and other fees necessary to the transactions,
and recording all documentation and providing for after
transaction servicing, monitoring and reporting.
Additional Charges
The foregoing are our
basic charges. We will charge $15.00 per month to the
lender for our loan servicing services. This payment
is used to cover charges associated with processing
borrower payments and lender remittances. These charges
do not include cost of Title Insurance or, if any, removing
liens, claims or encumbrances, which may be discovered
during our searches. These charges also do not include
payments we must make to Government Agencies on your
behalf. These out-of-pocket charges will have to be
reimbursed at closing. Additional charges may apply
under the following circumstances.
1% Non-electronic
payment charge (optional)
Borrowers or lenders who
elect to pay their loans, or receive their payments,
as the case may be, through bank drafts, rather than
the electronic payment service through ACH, will pay
$20 charge per check payment or remittance. This fee
will be paid to us for processing bank draft payments.
Collection agency recovery fee
In the event that a loan
becomes more than 1 month late, we will refer the lender
to a professional collection agency to attempt to collect
the overdue amount. Each collection agency has its own
fee structure.
Delinquency Charges
$5 failed payment
fee
If your automatic monthly
payment fails due to insufficient funds or because you
closed your bank account and forgot to tell us, you'll
be charged $5. This fee is paid to us, and covers the
fees that our bank charges for failed payments.
Late payment fee
If a borrower’s
monthly payment is made late, and beyond its applicable
grace period, a borrower will be charged a late fee
that is established by the documentation for the loan.
Late fees are passed on to lenders; we do not retain
late fees.
Third Parties
In delivering services,
we may work with third party vendors, some of which
may be affiliated, in delivering services to you. Their
charges may be separately stated.
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