HUD, VA Allow MERS Charge
The Department of Housing and Urban Development and the Department of Veterans Affairs now permit lenders to charge borrowers MERS registration fees on all FHA and VA insured mortgage loans.
Margaret Burns, director of the office of single-family program development at HUD, authored a letter telling lenders that MERS benefits borrowers, mortgage lenders, servicers and Ginnie Mae among others in the mortgage finance industry. The change for HUD is effective immediately.
Similarly, the Department of Veterans Affairs has approved MERS as an "allowable charge" and said it will impose no restriction "concerning the party who pays the fee" because of the benefit that will accrue to veteran homebuyers as a result of paying the fees, according to a letter issued by Keith Pedigo, director of loan guaranty service at Veterans Affairs.
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