Mortgage Brokers Face New Rules

The Wall Street Journal reports:

Federal regulators this summer might propose new rules for mortgage-lending fees that would require mortgage lenders to charge a flat fee for processing a loan, and limit the amount by which borrowers can reduce their interest rate through "discount points."

The Consumer Financial Protection Bureau Wednesday said it could bar mortgage brokers from the widespread practice of calculating origination fees —the fees borrowers pay to compensate loan officers—as a percentage of the loan size. Instead, brokerage firms and creditors would have to charge a flat fee.