Los Angeles Times (02/27/08)
Proposed rules from HUD aim to help mortgage borrowers better understand the costs involved before signing loan documents. Under the new scenario, lenders would have to present borrowers with a good-faith estimate spelling out balloon payments, prepayment penalties and other loan terms and fees; and the actual settlement costs could not exceed that good-faith estimate by more than 10 percent. Additionally, the good-faith estimate would detail any payments to mortgage brokers. National Association of Mortgage Brokers President-elect Marc Savitt opposes the disclosure because lenders would not have to reveal payments to other parties handling the loan. Savitt also believes that listing the payment as a "credit to the borrower" would cause confusion.
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