Question:

What say mortgage broker laws?

Answer:

Mortgage broker laws require that the broker provides a full written disclosure to their client within 3 business days. The Good Faith Estimate provided by mortgage brokers will have all loan related costs itemized and explained.

If some of the costs on the GFE are not possible to determine, an estimate needs to be provided in good faith.

The written disclosure should contain the APR, the loan amount, the payment schedule, any prepaid points, etc. A credit report, appraisal, mortgage insurance, title policy and insurance, escrow funds, and other third party fees have to be enclosed in the GFE.

Even though many brokers may choose to charge hidden fees, they are required to inform borrowers within three days prior to closing about any extra charges to appear on the final HUD-1 statement. If such additional fees are going to be charged, the mortgage broker is required by the law to provide written explanation of those extra costs to the borrower.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage