The Birmingham age-herald., 1924-02-17
FINANCE DIVISION !
 WOULD AID FEES.
Local Brokers Need Addition To Board, Hazard Shows
 In Statement

l Serious conflicts in commission rates among the various real estate dealers and dealers handling mortgage loans would be obviated in time by the forma- tion of mortgage and finance division of the Birmingham Real Estate board according to w. W. Hazard. president of the Hazard Clark Mortgage com lpany.
 The division which Mir. Hazard pro- poses and toward which the board has been working for some time would effec- lively settle the rate question, and the home buyer would benefit, number of realtors affirmed.
 MT. Hazard is chairman of the rates commission, division of mortgage and finance, National Real Estate boards.
 No Universal Commission
 At the present time," accordin to Mir. Hazard, ''there is no universal commis- sion charge made by the numerous brokers negotiating mortgage loans in Birmingham.
 Among the smaller brokers it has been the custom to charge, as high as per cent for a loan of three or five year periods, irrespective of rate or amount of amortization. The larger and, we mgiht say, the more reputable brokers vary to some extent their com missions, according to rate of interest the loan is to bear, as we'll as the time the loan is to run.
 Several have flat charge of per cent commission up to $10,00O; 3 per cent commission from that figure to S2O, 900, and 2h per cent commission from $20,000 up, on all loans made fa snIo nf
 1.-The commissions, as a general rule, include the payment by the broker of such expenses as attorneys fees, the state privilege tax, the recording fee and the federal stamp tax, and also in cludes the fee for the preparation of the papers.
 Pays Extension
 "The only item that the borrower pays is for the original extension of his abstract The renewal charges usually are ? per cent of the amount renewed at the time of maturity of existing mortgage and out of this per cent the broker pays all expenses in connection with the renewal. We have several brokers here who are making charges of only 21a per cent of the amount of the loan, irrespective of the amount borrowed, but these brikers require that the borrower pay all expenses in connection with the closing of the loan except the state privilege tax.
 Farm Loans Long
 In the case of farm loans through out the state, they are seldom made for periods less than five years and the commission charge is per cent for five years, 6 per cent for six years, per cent for seven years, s per cent for eight year loans or per cent for nine or ten year loans.
 "The borrower is required to pay the abstract expense, recording fee, and fed the usual thing, the attorneys fee. state eral stamp tax, the broker paying, as privilege tax and the cost of preparing the papers.
 You can see," concluded Mir. Haz- gard, that there is absolutely no uni formity in commission charges by the various brokers of the city and this, perhaps. is the principal reason that we would like to see the mortgage and finance division of the local board organ ized.
 Changes Would Be Possible
 Ut is the general consensus of opin- ion that the commission rate would be less on three year loans than on five and less on five year loans than on ten year and fifteen year loans.
 Our mortgage and finance division is only in its initial stage, and no def. nite plan has been worked out by the present committee which has the com. mission element in charge, so it is i'm. possible for me to give any idea al this time of the agreement that finally will be reached"