Mortgage disclosure amendments do more harm than good
The grapevine says that the Department of Housing and Urban Development (HUD) is seriously considering a proposal by the National Association of Mortgage Brokers (NAMB) for amending mortgage disclosure requirements. Is their proposal good for borrowers?
Yes and no. It improves disclosure from lenders in a way that makes sense, but it reduces disclosure from brokers in a way that would make them even less accountable to borrowers than they are now. It would eliminate Upfront Mortgage Brokers (UMBs), who charge borrowers a set fee negotiated in advance, because it would no longer be possible for borrowers to determine from closing documents how much the broker made on the transaction.
A serious problem for bo...
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