Hal's Mortgage Blog

Our government is working hard to protect us from ourselves. The National Association of Realtors (NAR) has released a report suggesting that loan disclosure changes proposed by the Department of Housing and Urban Development (HUD) would add more than $400 to the average cost of obtaining a loan, more than double the estimate made by the housing agency.

Howard Ruff used to say that whenever the government tries to solve a problem it creates two more. I don’t think adding $400 to the cost of obtaining a mortgage is such a good idea. I’m sure HUD thinks it will come out of the mortgage company’s pocket.

What can a lender do when his expenses increase?

1. Not do the loan.
2. Pass the increased cost of business on to the consumer.

Which one of the two choices above is in the consumer’s best interest?