HUD Proposes Mortgage Broker Notices

HUD has just proposed sample notices that the mortgage broker would be required to give to customers. The notice explains the role of the broker, specifies whose interests the broker represents, and also discloses the fees. This is presently a proposal only, but HUD has introduced it with an unusual amount of fanfare so we can expect that there will be a final rule. It shouldn't have a direct impact on banks, but it does become one more thing to look for when dealing with third parties. It may also come to play a role in identifying and disclosing finance charges for purposes of Regulation Z. This is one to watch.

Copyright © 1997 Compliance Action. Originally appeared in Compliance Action, Vol. 2, No. 12 & 13, 10/97