Brokers Call New GFE Disclosure Unfair

The National Association of Mortgage Brokers contends it is "unfair" that brokers have to disclose their indirect compensation on the newly revamped good faith estimate differently from banks and other competitors. "It is basically unfair to have direct competitors disclosing differently," said Joe Falk, a former NAMB president. The new Real Estate Settlement Procedures Act rule issued by the Department of Housing and Urban Development re-characterizes the yield-spread premium on the GFE as a charge or credit in relation to origination fees. Meanwhile, lenders' indirect compensation is "hidden at the bottom of a page and without relation to any other fees," Mr. Falk said. The American Bankers Association also said it is "disappointed" with many aspects of the RESPA rule and the new disclosure of YSPs. "ABA believes the new formulation [of YSPs] will be confusing to consumers," ABA's weekly newsletter says.