While Kenneth Harney presented various statements about the mortgage lending industry fee/expense practices on a nationwide basis, (" 'Garbage,' 'Junk' Fees Spur Consumer Lawsuits," Your Mortgage, Aug. 21) it was unfortunate that he was unable to specifically discuss the practice occurring here in California.
The Department of Real Estate in their mortgage broker audits is specifically looking for the correct and complete presentation of estimated closing costs that the borrower should incur as the result of a mortgage transaction. These anticipated costs must be presented to the borrower in writing at the time of the loan application or within three days following this activity. The borrower must sign and date the Good Faith Estimate of Financing Charges, which signifies their understanding and acknowledgment of these fees.
