Coop Management Company Fee for Equity Loan

[pavlusha]

Management Fees for Coop Equity Loan

Today, 06:16 PM
Our large NYC coop 200 apts management company requests a 16K for finding a broker and new insurance company for a $6 mil loan. Is it fair? This is what they said to us:
As indicated in our contract, handling a Co-operative refinancing is not part of a management companies standard responsibilities. It is typical that in addition to paying the mortgage broker that management also receives a fee for locating and negotiating the mortgage. At last refinancing 10 years ago we received a consulting fee of $9K. Please note while the mortgage broker typically receives 1 point they have agreed to reduce their fee to .40 basis points based on the number of loans we have given them in the past few years. We are requesting a fee in the amount of $16 K which is moderate in comparison to the typical industry fee for this transaction.

Is this fee normal or excessive?. What is the industry standard? Advice is needed.

[aslan]

It seems they are saying that they saved your co-op building $36,000 (0.6% of $6 million), and they are asking for some portion of that savings as a fee to them. Everything is negotiable so it's hard to comment, but the 1 percent mortgage broker fee is not unheard of.

The nice thing about your management company is that they "are requesting" the $16,000 and not simply mailing you a bill. You'd be surprised by how many people in this industry, especially contractors, will just send you an arbitrary bill without discussing or giving you a quote beforehand, and will be willing to take you to small claims court if you don't pay.

Ultimately it's up to you. Perhaps you can counter with a lower fee?