Understanding Mortgage Transfer Fees
When a mortgage loan is sold or transferred to a new lender or mortgage company, the new servicer may charge a fee to cover the administrative costs associated with the transfer. This fee is commonly known as a mortgage transfer fee or a mortgage assignment fee. In the case you mentioned, the fee in question is $189.00.
The legality and regulations surrounding mortgage transfer fees can vary from state to state. Let's explore the specifics for North Carolina and provide actionable advice to help you navigate this situation.
Is it Legal in North Carolina?
In North Carolina, mortgage transfer fees are generally legal and permissible under certain conditions. However, the fee amount is regulated and subject to specific guidelines outlined in the state's laws.
According to the North Carolina General Statutes, the maximum allowable fee for the transfer or assignment of a mortgage loan is:
- $64.00 for loans secured by residential real property
- $89.00 for loans secured by non-residential real property
These fee limits are subject to periodic adjustments based on the Consumer Price Index.
So, in your case, if the $189.00 fee is being charged for the transfer of a residential mortgage loan, it would likely exceed the legally permissible limit set by North Carolina state law.
Challenging an Excessive Fee
If you believe that the $189.00 fee being charged by the mortgage company that purchased your loan exceeds the legal limit, you have the right to challenge it. Here are some steps you can take:
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Review the Loan Transfer Documentation: Carefully review any documentation or correspondence you received from the new mortgage company regarding the transfer fee. Look for an explanation or breakdown of the fee amount.
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Contact the Mortgage Company: Reach out to the mortgage company's customer service department and politely inquire about the fee. Express your concern that the amount seems to exceed the legal limit in North Carolina. Request a detailed explanation and justification for the fee.
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Submit a Written Dispute: If the mortgage company fails to provide a satisfactory explanation or refuses to adjust the fee, you can submit a written dispute. Clearly state your position, cite the relevant North Carolina statutes, and request a refund or adjustment of the excessive portion of the fee.
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Escalate If Necessary: If the mortgage company remains unresponsive or dismissive of your dispute, you can escalate the matter by filing a complaint with the North Carolina Commissioner of Banks or seeking legal advice from a consumer protection attorney.
It's important to note that while mortgage transfer fees are generally legal in North Carolina, they are subject to specific limits and regulations. If a fee exceeds the permissible amount without proper justification, you have the right to challenge it through the appropriate channels.
Proactive Measures
To avoid potential issues with excessive mortgage transfer fees in the future, consider taking the following proactive measures:
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Review Your Mortgage Documents: Familiarize yourself with the terms and conditions of your mortgage agreement, specifically any provisions related to fees and transfers.
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Stay Informed: Keep yourself updated on any changes or updates to North Carolina's mortgage transfer fee regulations by monitoring official sources like the North Carolina Commissioner of Banks website.
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Maintain Accurate Records: Retain copies of all communication and documentation related to your mortgage, including any notices or statements regarding fees and charges.
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Advocate for Your Rights: If you encounter any questionable fees or charges, don't hesitate to respectfully inquire and assert your rights as a consumer.
Conclusion
In North Carolina, mortgage transfer fees are legal but subject to specific limits set by state law. If the $189.00 fee being charged by the mortgage company that purchased your residential loan exceeds the legal limit, you have the right to challenge it and seek a refund or adjustment.
Remember to review your loan documents, communicate with the mortgage company, and escalate the matter if necessary. Staying informed, maintaining accurate records, and advocating for your rights as a consumer can help you navigate these situations effectively.
It's essential to understand your legal rights and obligations when it comes to mortgage-related fees and charges. By following the practical advice outlined in this article, you can confidently address any potential issues and ensure fair treatment in accordance with North Carolina state laws.