A proposal by HUD in 2002 to allow lenders and others to offer packages of loans and settlement services at a single price. A package must include a loan at a guaranteed interest rate plus a guaranteed dollar price for all settlement services except for per diem interest, hazard insurance, and escrows.

Packagers can deal freely with their own affiliates and are exempt from kickback prohibition rules. The rationale is that competition among packagers will force down the prices they pay for services. Competition will be effective because the price of a package will consist solely of the interest rate plus a single dollar price for all settlement services.