National Association of Mortgage Brokers president Don Frommeyer weighed in on what he feels are inordinate disclosure requirements loan brokers face during a recent discussion at the group's NAMB/West Show in Las Vegas.
“I consistently see some of my competitors where they are looking for their best price, but they don't have to give a steering (document) because they're not required to fill out that piece of paper,” he said. “For years, it's always been that the mortgage brokers have to overdisclose.”
Among specific regulatory requirements Frommeyer showed concern about during the discussion were good-faith estimates.
“I see good-faith estimates that they get from a credit union or a bank and they put it against mine, and mine looks like we're charging thousands of dollars. But we know that the correspondent is making the same amount of money, if not more, but the sum hasn't been disclosed.”
The NAMB president told this publication that he believes “the level playing field is somewhat there, the problem is, it just keeps moving.”
“If there is going to be something that is going to benefit the customer, either everybody does it or nobody does it,” he said.
Frommeyer said NAMB is reaching out to many of the regulated LOs in the business.
“There are 113,000 registered loan originators through the NMLS. We have a lot of different ideas on how to go after those people.”
