3.1.11 Lender Fees and Charges

A. For programs other than Section 223(a)(7), the maximum financing and placement fees the Lender may charge is limited to a total of 3.5% of the mortgage amount. This 3.5% maximum may consist of any

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Chapter 3 Programs 3.1 General Program Requirements

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combination of origination, financing, and permanent placement fees, as long as it also includes the Lender’s legal fee. In bond transactions, financing and placement fees up to 5.5% are permissible. Third party costs (e.g., appraisal, market study, Capital Needs Assessment (CNA), and other organization costs) may be included as mortgageable soft costs in the mortgage calculations and are not included in the limitation on Lender fees. See Chapter 11, Section 11.5 for additional provisions regarding loan fees and charges.

B. The Lender is prohibited from advancing fees on behalf of the Borrower for payment of discount fees. Waivers of this provision must be granted in writing and submitted to Multifamily Production Headquarters and reviewed per HUD’s regulatory requirements (See 24 CFR 200.41).