Reminder: VA regulations limit the fees the veteran can pay to obtain a loan

As a reminder, VA regulations limit the fees the veteran can pay to obtain a loan. Carrington Mortgage Services, LLC (CMS) strictly adheres to the limitations on borrower-paid fees and charges when making VA loans.

CMS will permit the Broker Fee to be included in the 1% Fee Amount to the veteran may be charged.

Amount Above 1% Tolerance can be Resolved in the Following Ways:

  • Fee paid by Seller
  • Reduction in Settlement Costs by the Settlement Agent
  • Broker reducing their Broker Fee
  • Broker buying out the Underwriting Fee

In order to pass the 1.00%, the Broker must submit a Change of Circumstance request indicating which option will be used to bring the fees within the 1.00% total.

Credit for the Interest rate selected may not be used to pay the Broker Fee or any other Unallowables.

Lender Credit may not be used to pay the Broker Fee.

The CMS VA Borrower Fees and Charges (Broker Guide) is currently being revised to include these requirements.

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