Beginning October 1, 2011, it is anticipated that all purchase loans transactions will be charged (1) an up-front guarantee fee equal to 2 percent of the loan amount, and (2) annual fee of 0.3 percent of the unpaid principal balance. The annual fee will be calculated and collected as follows:
1. The initial fee, for the first year of the loan will be determined and calculated based on the loan amount. For remaining year of the loan, the annual fee will be charged on the scheduled amortized unpaid principal balance (UPB) of the loan, not the actual UPB.
2. The fee will be calculated annually and the lender will be notified of the annual fee for the next 12 month period and billed to the lender each year on the anniversary date of the loan. Thus, the initial annual fee will be calculated when the loan is closed and the bill to collect the annual fee from the lender will be 12 months after the closing date of the loan. The annual fee for the next year will also be calculated at that time.
If you have any questions on this, feel free to call or email me at Kevin.Kenagy@ImpacCompanies.com. If you are trying to close before Oct 1 deadline, please have your clients go to WWW.ImpacLending.com/KevinK now.