Can the mortgagee collect administrative fees and costs associated with the preparation of the Partial Claim Subordinate Note and Mortgage?
No. Mortgagee Letter 2003-19, Page 6, Paragraph L, “Mortgagee Incentives” states the following: “…The mortgagor may not be charged any additional costs for receiving this loss mitigation workout option, however, it is acceptable that legal costs and fees related to a canceled foreclosure action may be collected directly from the mortgagor…
