BNM’s ‘no fee’ directive only covers retail loan document purchase, say lawyers

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BNM’s ‘no fee’ directive only covers retail loan document purchase, say lawyers FMTNews

A BNM circular has instructed financial institutions and legal firms to do away with documentation fees for standard form housing loan and home financing agreements with effect from Feb 1.

A senior conveyancing lawyer of 15 years’ standing said the directive was being misconstrued by borrowers to mean that lawyers cannot charge legal fees for loan transactions. “Law firms are still entitled to charge fees for services rendered in accordance with a schedule set by the authorities,” the lawyer added.

These services include witnessing the execution of documents, managing the transfer of titles and acting as stakeholder when loans are disbursed.

 

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