Level Playing Field Desired in Mortgages

When obtaining a mortgage, it is confusing to wade through all the documents and disclosures provided prior to, and at, closing. Brokers are hoping that as mortgage processes come under the eye of the government for regulation, the documents involved with the process may be regulated as well. As it stands, different lenders and brokers can use different forms when reporting yield spreads, or how much a mortgage profession is going to make on a deal.

Brokers are hoping that these documents will become regulated, as many of the other documents needed for a mortgage have become in the past. Brokers feel that wording may provide an unfair advantage to some brokers, while misleading borrowers. The issue will be discussed amid the national broker association, and presented with other reforms to Congress. Some of the wording may reflect bank documents that word portfolios or banking products in easy to understand terms, minus the “legalese.” This would help clients to make informed decisions in the end.