B-169860, JUN. 30, 1970
Highlights
THE FEE IN QUESTION WAS ASSESSED BY THE MORTGAGEE INCIDENT TO THE ASSUMPTION BY MR. LAMPE OF THE OUTSTANDING MORTGAGE ON THE HOME HE PURCHASED AND WAS PAID BY HIM IN ADDITION TO AN "ASSUMPTION AGREEMENT FEE" OF $25 AND A CREDIT REPORT FEE OF $13.87. SHOWS THAT THE ABOVE FEE WAS PAID BY MR. THE TITLE INSURANCE AND TRUST COMPANY STATES THAT: " *** GLENN COUNTY IS DESIGNATED AS A 'SELLER COUNTY. ' AND IF THIS PRACTICE WERE FOLLOWED. NO MENTION IS MADE THEREIN OF A BENEFICIARY STATEMENT FEE. REQUIRED WHENEVER THERE IS A LOAN ASSUMPTION. IS TO DETERMINE THE DATE TO WHICH INTEREST IS PAID AND THE TERMS OF THE LOAN AS WELL AS THE UNPAID BALANCE. IT IS NOTED IN THAT CONNECTION THAT SUBSECTION 10241(D)(4) OF ARTICLE OF THE CALIFORNIA BUSINESS AND PROFESSIONAL CODE REQUIRES THAT REAL ESTATE LICENSEES ACTING AS BROKERS IN SECURING LOANS FURNISH AN INFORMATION STATEMENT TO THE BORROWER WHICH INCLUDES THE ESTIMATED AMOUNT TO BE PAID ON THE ORDER OF THE BORROWER AS ASSUMPTION.
B-169860, JUN. 30, 1970
TO MR. PAUL J. GRAINGER:
YOUR LETTER OF MAY 8, 1970, REQUESTS OUR DECISION AS TO WHETHER THE VOUCHER ENCLOSED THEREWITH MAY PROPERLY BE CERTIFIED FOR PAYMENT. THE VOUCHER COVERS $15 IN FAVOR OF MR. DONALD J. LAMPE, AN EMPLOYEE OF THE DEPARTMENT OF AGRICULTURE FOREST SERVICE, REPRESENTING THE EXPENSE OF A BENEFICIARY STATEMENT FEE INCURRED BY MR. LAMPE IN THE PURCHASE OF A RESIDENCE IN WILLOWS, CALIFORNIA, INCIDENT TO THE TRANSFER OF HIS OFFICIAL STATION FROM WEAVERVILLE TO WILLOWS, CALIFORNIA.
THE FEE IN QUESTION WAS ASSESSED BY THE MORTGAGEE INCIDENT TO THE ASSUMPTION BY MR. LAMPE OF THE OUTSTANDING MORTGAGE ON THE HOME HE PURCHASED AND WAS PAID BY HIM IN ADDITION TO AN "ASSUMPTION AGREEMENT FEE" OF $25 AND A CREDIT REPORT FEE OF $13.87.
THE ESCROW CLOSING STATEMENT FURNISHED BY THE TITLE INSURANCE AND TRUST COMPANY OF WILLOWS, CALIFORNIA, SHOWS THAT THE ABOVE FEE WAS PAID BY MR. LAMPE. THE TITLE INSURANCE AND TRUST COMPANY STATES THAT:
" *** GLENN COUNTY IS DESIGNATED AS A 'SELLER COUNTY,' AND IF THIS PRACTICE WERE FOLLOWED, THE SELLER WOULD PAY THE FEES FOR TITLE INSURANCE, TRANSFER TAX, PREPARATION OF THE DEED, RECONVEYANCES AND/OR RELEASES, RECORDING OF RECONVEYANCES AND/OR RELEASES, AND ONE-HALF OF THE ESCROW FEE; THE BUYER WOULD PAY THE FEES FOR THE PREPARATION OF THE DEED OF TRUST AND NOTE, RECORDING THE DEED AND DEED OF TRUST, AND ONE HALF OF THE ESCROW FEE."
NO MENTION IS MADE THEREIN OF A BENEFICIARY STATEMENT FEE. SINCE THE BUYER USUALLY PAYS THE FEES FOR THE PREPARATION OF THE DEED OF TRUST AND NOTE AND THE RECORDING THEREOF, APPARENTLY THE BUYER ALSO USUALLY PAYS THE BENEFICIARY STATEMENT FEE INCIDENT TO ASSUMPTION OF AN OUTSTANDING MORTGAGE.
YOU SAY THAT THE BENEFICIARY'S STATEMENT, REQUIRED WHENEVER THERE IS A LOAN ASSUMPTION, IS TO DETERMINE THE DATE TO WHICH INTEREST IS PAID AND THE TERMS OF THE LOAN AS WELL AS THE UNPAID BALANCE. IT IS NOTED IN THAT CONNECTION THAT SUBSECTION 10241(D)(4) OF ARTICLE OF THE CALIFORNIA BUSINESS AND PROFESSIONAL CODE REQUIRES THAT REAL ESTATE LICENSEES ACTING AS BROKERS IN SECURING LOANS FURNISH AN INFORMATION STATEMENT TO THE BORROWER WHICH INCLUDES THE ESTIMATED AMOUNT TO BE PAID ON THE ORDER OF THE BORROWER AS ASSUMPTION, TRANSFER, FORWARDING AND BENEFICIARY STATEMENT FEES. FROM THIS WE MAY ASSUME THAT PREPARATION OF A BENEFICIARY STATEMENT IS CUSTOMARY IN THE STATE OF CALIFORNIA WHERE A BORROWER ASSUMES AN EXISTING LOAN.
WHILE THE TRUTH IN LENDING ACT AND IMPLEMENTING REGULATIONS FAIL TO SPECIFICALLY MENTION A BENEFICIARY STATEMENT FEE AS BEING INCLUDED OR EXCLUDED AS A FINANCE CHARGE, IT SEEMS REASONABLE TO REGARD THE FEE FOR PREPARATION THEREOF AS AN ADMINISTRATIVE RATHER THAN A FINANCE CHARGE. ACCORDINGLY THE FEE IS PROPER FOR REIMBURSEMENT.
ON THE BASIS OF THE FOREGOING THE VOUCHER, WHICH IS RETURNED HEREWITH, MAY BE CERTIFIED FOR PAYMENT IF OTHERWISE PROPER.