The National Association of Mortgage Brokers has announced its support for U.S. Rep. Luis Gutierrez's ongoing efforts to improve the disclosure of all fees in the mortgage process.
Gutierrez held a press conference on Feb. 25, announcing he would soon introduce legislation that would require brokers to disclose, in writing, all fees and penalties associated with home loans.
"We are fully on board with greater disclosure by all originators," said NAMB President Harry H. Dinham, CMC. "We believe everyone should understand their loan before signing, especially during a time when variable mortgages continue to be popular."
NAMB's official policy agenda, released in February, calls for the creation of a mandatory payment disclosure sheet for all variable-rate mortgages. The document would inform consumers about payment and interest variations and other key loan features, such as prepayment penalties and negative amortization. Dinham said this sheet should be given to consumers by all mortgage originators, whether they work for a brokerage or a bank lender.
"There should be no surprises in the mortgage process," said Dinham. "We all want to make sure that consumers get good advice and clear information, so they can make informed decisions."
Dinham noted that NAMB had been working since 2005 to further simplify the mortgage process by advocating a simplified good faith estimate (GFE). A simplified GFE would mirror the HUD-1 document that buyers receive at closing. He said the new form would eliminate a lot of the confusion that could occur during settlement.
"Mortgage brokers already disclose more information than traditional banks and other lending institutions. We have always been leaders for the cause of greater disclosure, and we look forward to working with Congressman Gutierrez and others to improve clarity in the mortgage process," said Dinham.
For more information, visit www.namb.org.