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NAMB submits disclosure form to HUD for simplification of settlement processmortgagepress.comUniform Mortgage Costs Disclosure, reform, NAMB proposal
The National Association of Mortgage Brokers has submitted a
suggested Uniform Mortgage Costs Disclosure form to the Department
of Housing and Urban Development that will simplify the mortgage
settlement process for consumers. NAMB believes that the best way
to accomplish this simplification is by revising the current Good
Faith Estimate (GFE) to make disclosures the same for all mortgage
originators.
In a letter to HUD Secretary Alphonso Jackson, NAMB reaffirmed
its desire to work with HUD. NAMB's suggested disclosure simplifies
the closing process and allows consumers to focus on the true costs
of different loan products since it clearly states the following
items for the borrower: interest rate; origination costs they are
being charged, if any; total amount of their settlement costs; and
monthly payment amount.
"The FTC study showed that mortgage broker compensation
disclosures as proposed in HUD's RESPA proposal confused borrowers,
causing them to often choose higher cost mortgages," said NAMB
President Bob Armbruster. "NAMB believes these findings are
significant and should be considered in any reform proposal. The
uniformity created by our proposed GFE allows consumers to compare
the costs of the different loan products offered by both brokers
and lenders when shopping for their mortgage."
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