Mortgage Brokers’ Fees Face New Regulation
Housing Secretary Andrew Cuomo proposed a new set of “sunshine” rules to stop fee-gouging and inside dealing by mortgage brokers at the expense of home buyers. The proposed regulations, which must be reviewed by Congress, would require brokers to disclose their fees upfront to customers and reveal whether they will also receive a fee from lenders. Brokers would also be required to use a standard, “plain-English” contract spelling out who they represent as well as the possible fee paid by the lender. In California, brokers are already required by state regulation to disclose their fees, according to the California Assn. of Mortgage Brokers.