The Department of Housing and Urban Development on Monday issued a final policy statement, clarifying that fees paid by lenders to mortgage brokers are not necessarily illegal.

According to the statement, fees collected by a broker must be proportional to the value of the services or goods provided in order to be legal. HUD listed 14 services it considers valuable, including ordering appraisals and inspections.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.