Much the best way to protect consumers in the home loan market is to simplify the structure of the market so that borrowers have direct access to the information they need without government intervention. This could be done by creating direct links between the primary market where loans are originated and the secondary market where they are priced.
I noted in a previous article in this series that borrowers in Denmark can borrow at a rate equal to the current yield on the secondary market price of their loan, which they can easily find online, plus a standard 0.5 percent markup. This leaves only upfront lender fees to be negotiated on a case-by-case basis, and these are set competitively because borrowers are fully capable of distinguishing higher fees from lower fees. There is no required Truth in Lending or Good Faith Estimate documents because none are needed.