PRESS RELEASE
Posted on: February 27, 2007

Contact:
Jodi Greenblatt
(703) 342-5842

NAMB Supports U.S. Rep. Gutierrez Efforts to Improve Mortgage Disclosure
Improved Disclosure is Cornerstone of Association's Policy Agenda

Washington, D.C. - February 26, 2007 - The National Association of Mortgage Brokers today announced its support for U.S. Rep. Luis Gutierrez's ongoing efforts to improve the disclosure of all fees in the mortgage process.

Gutierrez held a press conference this past Sunday announcing he would soon introduce legislation that would require brokers to disclose, in writing, all fees and penalties associated with home loans.

"We are fully on board with greater disclosure by all originators," said NAMB President Harry Dinham. "We believe everyone should understand their loan before signing - especially during a time when variable mortgages continue to be popular."

NAMB's official policy agenda, released last week, calls for the creation of a mandatory payment disclosure sheet for all variable rate mortgages. The document would inform consumers about payment and interest variations and other key loan features such as prepayment penalties and negative amortization. Dinham said this sheet should be given to consumers by all mortgage originators whether a broker or a bank lender.

"There should be no surprises in the mortgage process," said Dinham. "We all want to make sure that consumers get good advice and clear information so they can make informed decisions."

Dinham noted that NAMB has been working since 2005 to further simplify the mortgage process by advocating for a simplified good faith estimate (GFE). A new GFE should mirror the HUD-1 document that buyers receive at closing (the HUD-1 details all costs for the buyer and seller.) He said this new form would eliminate a lot of the confusion that can occur during settlement.

"Mortgage brokers already disclose more information than traditional banks and other lending institutions. We have always been leaders for the cause of greater disclosure and we look forward to working with Congressman Gutierrez and others to improve clarity in the mortgage process," said Dinham.

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry with more than 25,000 members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates over 50% of all residential loans in the United States.

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