Brokers, bankers caution against mortgage fee disclosure overhaul

The U.S. Department of Housing and Urban Development has overhauled the Real Estate Settlement Procedures Act, a move that some industry insiders say could create confusion and misunderstanding among buyers. The changes, set to take effect Jan. 1, were made in order to increase homebuyers’ understanding of the costs that come with closing a home loan — including brokers’ fees. While in the past buyers have been privy to a “good faith estimate” of the costs associated with their mortgage, Fox Business News reported, this new system will enumerate the charges. While transparency is the goal, some brokers and bankers contend that the ensuing confusion could scare off buyers and further harm an already tenuous housing market.