What a difference a declining housing market can make. According to Wholesale Access, just a few years ago, mortgage brokers originated more than two-thirds of new home loans. Now their share of the mortgage market has been cut to 45%.
That’s a shocking loss of market share when you consider that home loan brokers were supposedly a better for homeowners. Because they don’t work for any one bank, they can shop dozens of lenders on your behalf to get the best loan at the lowest price.
But they seldom did. Instead, brokers pocketed kickbacks from banks in return for selling borrowers unnecessarily costly loans. An April study by the Center for Responsible Lending, a nonprofit organization working to eliminate abusive lending practices, found that among borrowers with credit scores of 640 or less, those who used brokers paid an average of $5,222 more in the first four years of their mortgage than those who borrowed directly from a bank. Borrowers with credit scores of 640 to 720 paid $1,316 more.
I like the valuable information you provide in your articles. I’ll bookmark your weblog and check again here regularly. I am quite certain I will learn many new stuff right here! Best of luck for the next!
Comment by Mortgage Rates today — April 6, 2011 @ 1:19 am