Contract Processing

I have a question to seasoned contract processors who do FHA processing. How are you paid on these files? Does the title company cut you a check, and it shows on the HUD payable to you as a 3rd party? Or is it paid to the Broker and the broker cuts you a check. Is there some kind of rule on this for FHA loans? I know it's a 3rd party fee, but I wasn't sure on this.

The broker pays me on all FHA's - I have an agreement they sign indicating they will pay me outside the closing/after the loan closes. A processing fee cannot be charged on FHA loans.

I charge Processing fees all the time. It is charged to the broker and they pay me directly. This is not a non-allowable fee on FHA's anymore. The buyer is allowed to pay it. Am I misunderstanding your comment Jane?

Jane in Charlotte, North Carolina said: The broker pays me on all FHA's - I have an agreement they sign indicating they will pay me outside the closing/after the loan closes. A processing fee cannot be charged on FHA loans.

A third processing Fee can be charged on FHA loans. I called HUD and talked to a number of different lenders about this and they all said it was ok.

It is best to check the regulations for the state you are processing in.
Some states allow the processing fee to show on the HUD, whereas others do not. Just as some states require that you have an originators license to process mortgage loans in that state. Better safe then sorry. Cary

I have the title company cut the check to my corporation and then they will send it to you directly.

I am thinking about becoming a contract loan processor. I have years of experience in this business, but do not know the best way to get started. Can someone give me advice to point me in the right direction?