Old 02-05-2008, 12:09 AM   #1 (permalink)
Nathan F.
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Question Questionable fees

Not sure if this is the right place to post this, but hopefully Moe can move it if necessary. One of my clients has a fee on their closing statement that i have not come across before and i was wondering if anyone out there has. The builder (Lennar), included a settlement charge labeled "Charitable Endowment Fee to LENNAR CHARITABLE FOUNDATION". The fee was just under $200, but it might be relevant to the case. Any feedback is appreciated.

Thanks,

Nathan Fransen


 
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Old 02-05-2008, 10:44 AM   #2 (permalink)
Mary Salzer
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Re: Questionable fees

Nathan - Lennar Homes has a Charitable Organization attached to it that apparently the home owner at the time of closing got to contribute to. Somewhere in the documentation there is probably a disclosure or opt form to reflect this contribution. Check also the Sales Contract as they may have made it a portion of the Contract or of one of the addenda. This is not a fee that can be done without a voluntary option of the borrower. I am guessing that this is a direct closing with the Builder on one of their homes or a refinance of one of their homes. Strange if it is a refinance....Lennar doe not have a history of doing those except for in house considerations and accommodations to employees.
 
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