Mortgage brokers told the Fed today that there should be a level playing field for all mortgage originators.
It's difficult for prospective borrowers to compare mortgages because many originators do not have to disclose all of their fees, Joe Falk, former president of the National Association of Mortgage Brokers, told the Federal Reserve Board in Philadelphia, according to an announcement.
Mortgage brokers are the only originators who must fully inform applicants about all loan costs, Falk reportedly said. "For some reason, state and federal regulators continue to exempt banks and other lenders from transparency standards."
All originators receive some form of direct or indirect compensation for their services, he said. But banks, Internet lenders and credit unions don't have the same disclosure regulations.
NAMB said the hearing was the second in a series on mortgage issues. Hearings are being sponsored by the Federal Reserve Board of Governors on June 6 in San Francisco and on July 11 in Atlanta, the statement said.