fiduciary responsibility: New Fed rules miss one key lending abuse
- 07/26/08 11:07 PM
This is amazing! The FEDs require full disclosure and fiduciary responsibility for any money-related transaction with clients EXCEPT in the case of mortgage brokers. They are not required to disclose UPFRONT how much they are making on the YIELD SPREAD PREMIUM, a payment made to the loan originator which normally just gets buried as a footnote in the HUD statement. And loan officers employed by lending institutions are not required to disclose it at all! This has allowed unscrupulous mortgage brokers and lenders to steer unsuspecting borrowers into more expensive loans, to earn a larger commission on the loan, beyond what a … (6 comments)
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This is amazing!
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