Anti steering

As far as federal law, the loan officer has to give the borrower 3 loan options... it does not have to be in writing and there is nothing required to be signed... however, lender guidelines might and often will require the borrower to sign something showing they have been disclosed the 3 loan options, and they can also require a signature from the loan officer as well.. WilliamAcres.com

Anti steering is a broad subject and depending on the type of loan officer (mortgage broker vs.mortgage banker) they types of disclosures required vary. Brokers who "farm" your loan out to various lenders are required to disclose a anti-steering disclosure showing you a minimum of three different but equal options. Mortgage Bankers do not farm loans out therefore typically they do not show a three loan options as the loan is oly going to one investor (the bank)

As the above answer suggested that brokers "Farm" out your loan, let me just say that brokers will "Shop" your loan for the best rates and lowest fees... for the broker, the only real competition is other brokers... they will most always beat the banks both in lower rates and lower fees... regarding anti steering... Banks are not required to disclose 3 options, because they rarely have 3 options to offer.. Hence the term... one bank, one lending program... one more reason you should use a broker and not a bank... Mortgage brokers are required to be educated, licensed, and listed with the National Mortgage License System, and go through extensive background checks prior to licensing.. With loan officers (term used lightly) at the big banks, they are not required to have education, license or the same level of background checks as required by brokers. Also with brokers, you will always know exactly how much the lender is charging you for your loan... with the big banks, you will never know because it's not required for them to disclose it... hands down, you should use a broker, not a bank.. WilliamAcres.com