"Americans spend approximately $50 billion each year on settlement costs without knowing exactly what they are paying for or having the opportunity to shop effectively for the best mortgage to suit their needs," said Martinez. "The Bush Administration believes it is time to take the confusion and uncertainty out of the home buying process by making loan shopping and settlement less frustrating and more understandable and ultimately, less costly."

Underpinning the "Homebuyer Bill of Rights" are consumer friendly principles that would guide the settlement process. These principles mandate that homebuyers have the right to receive settlement cost information early in the process, and that the costs be as firm as possible. Other principles stipulate that consumers have the right to: benefit from new products, competition and technological innovations, better borrower education and simplified disclosure, and be protected by vigorous enforcement of RESPA and a level playing field for all industry providers.

To meet these principles, HUD proposes to reform the home buying process by:

• Changing the way lender payments to brokers are recorded and reported to consumers,
• Significantly improving HUD's Good Faith Estimate settlement cost disclosure, and,
• Removing regulatory barriers to allow market forces and increased competition to promote greater choice for consumers by allowing guaranteed packages or "bundling" of settlement services and mortgage loans.

After reviews by OMB and Congress, the proposal will be published in the Federal Register and made available for public comment for 90 days.