The Federal Housing Administration has issued a letter which changes the maximum fee requirements for lenders effective January 1, 2010. Traditionally, the lender’s “origination fee” has been limited to 1% of the loan amount. FHA has allowed the lenders to charge reasonable miscellaneous fees in addition to the origination fee as long as they are “usual and customary” and itemized on the Good Faith Estimate of Settlement Charges given to applicants within three business days of loan application. Beginning January 1, 2010, the lenders must use a new Good Faith Estimate that now longer itemizes these charges. All direct lender charges will be lumped into one line on the form and that line-item will no longer have the 1% cap. "FHA expects that lenders will continue to charge fair and reasonable fees for all origination services and the agency will continue to monitor to ensure that FHA borrowers are not overcharged," FHA commissioner David Stevens says in the mortgagee letter.