It appears our government is at it again! This time they are going after Mortgage Brokers???
In an attempt to restore our expiring economy the Bush Administration is pressing for Mortgage Brokers to have full disclosure to fees charged for originating loans. Lender and Broker trade groups in the past have resisted mandatory Federal disclosure, but no more!
Mortgage Brokers will now provide clients with a breakdown of all fees, duties and services at the onset of gaining an application. 
In a more important new move, Lenders are coming together to support a standard fee allowable for brokers to charge their clients. This sets up a Maximum fee across the board. Plus brokers will have to spell out where fees are coming from and their legal duties to the consumer.
Also in a separate debate, Treasure Sec. Henry Paulson is urging congress to set NEW Nationwide licensing standards for mortgage brokers.
I'd love to hear what our AR Brokers have to say about these moves? Are they justified? Did you see this coming? Does it appear the Gov. is trying to place blame on the brokers for the fall out of bad loans? What are the current guidelines for disclosure and fee placement?
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The regulations will read just like an episode from South Park. It is hysterical. You can't regulate gravity and you can't regulate bad behavior and you can't regulate STUPID. In the end the cost of unintended results will impact the consumer much worse than before. Just what the banks want and just the way they like it.
Geez, you would think it was an election year or something.
The result will be the consumer looses. It will end up costing them more and they won't know it. Why? Unlike brokers who disclose the fees they charge, the banks will continue to be able to hide. They have the bigger better strong lobby.
Bank 100
Consumer 0