A lender offering loans on the Internet who provides mortgage shoppers with the information they need to make an informed decision before applying for a mortgage and guarantees them fair treatment during the period after they apply through to closing. The specific requirements, and how they meet the needs of shoppers, are as follows: Requirement 1:A UML provides quick access to the market niches it prices on-line. Shoppers need a quick way to determine whether a particular lender prices the niche in which that shopper falls. If not, the shopper can go elsewhere without wasting time. If the shopper's niche is priced on-line: The shopper can make valid comparisons of one UML's prices against those of another, prior to paying any fees and prior to filling out an application; After selecting the lender and applying for the desired loan, the applicant is not exposed to a future price change based on information that the lender claims not to have had at the time of the original quote; The applicant who elects to move to a different niche, say to a 15-year from a 30, or to pay more points to reduce the rate, can check online to ensure that the new niche has been correctly priced; The applicant who elects to float rather than lock can monitor the price as it is reset daily with the market, and therefore will not be overcharged on the lock day. UMLs comply with this requirement by filling out a table on their Web site called Market Niches Priced On-Line. Requirement 2: A UML includes its fixed-dollar fees, including credit and appraisal charges, in its price and guarantees them to closing. This assures borrowers that new fees won't be added or existing ones increased after they have committed themselves to working with the selected lender. Requirement 3: A UML provides a clear explanation of its lock requirements: Mortgage shoppers need to know when they have the discretion to lock. The explanation should include any required payments, processes that must be completed, how expired locks are handled, and whether the borrower is committed as well as the UML. Requirement 4: A UML discloses all the information about its ARM's needed by shoppers to make intelligent decisions. . Loan officers selling ARM's stress one or another feature, usually the index, and leave the remainder of the ARM's features in the dark. Shoppers need information on potential ARM performance what will happen to the interest rate and mortgage payment under assumptions about future interest rates that make sense to the shopper. UML's can comply with this rule in two ways. One way is to offer schedules of monthly payment and interest rate under no-change and worst-case scenarios. The first assumes that the most recent value of the index remains unchanged through the life of the loan, while the second assumes that the ARM rate increases by the maximum amount allowed in the contract. Requirement 5: A UML informs borrowers if its loan officers are compensated in a way that gives them a financial incentive to overcharge the borrower.