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CFPB: Buyers aren't shopping around for a mortgage

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Mortgage Professional America | 13 Jan 2015, 08:19 AM Agree 0
Americans may be spending more time shopping for clothes than a mortgage, according to a new report from the regulator, which also released a new "unbiased" tool to help consumers shop for a mortgage.
  • sanman | | 13 Jan 2015, 09:41 AM Agree 0
    why would anyone want the american nightmare, or as i call it the money pit ! Many americans prefer to live in two or three bed room apartment rather then pay a mortgage that will never give you anything back and makes the banks rich and the cosumer poor ! if you live ina rented house or apartment the maintance falls in the owner and so do repairs and upgrades ! taxes and water tax is also on the owner if something breaks the owner must fix! cant wait to get rid of my home; what a dumb move !
  • | | 13 Jan 2015, 09:54 AM Agree 0
    True Sanman but if you're paying rent in the same home for 5 years then you're just helping the homeowner gain equity. If you reside in an area you feel you're going to set roots within then buying a home is a great investment.
  • Loan Officer | | 13 Jan 2015, 11:06 AM Agree 0
    Brokers / Lenders have what is called a pull thru ratio. When you lock a mortgage for a borrower you must close said mortgage. Penalty for not closing mortgage places Broker / Lender in Tier ll or tier lll pricing. This destroys the ability of the mortgage officer to be competitive. Not being able to originate mortgages equals no pay for underwriters, processors, Escrow officers, Appraisers ect.. Before suggesting that borrowers submit multiple mortgage packages - do some homework yourself. Submitting multiple applications is a flat out horrible unethical selfish practice that destroys the lives of others. You have 20 people working on your deal. These workers do not get paid until the mortgage closes and then you close with another Lender? And this is only the tip of the Ice burg what about the money that you have locked up that is now not available for others.
  • LO | | 13 Jan 2015, 11:59 AM Agree 0
    Does the CFPB let the borrowers know that filling out applications with multiple institutions can effect their credit scores negatively?
  • Loan Officer WA | | 13 Jan 2015, 01:10 PM Agree 0
    Rates between lenders don't vary that much so by shopping around what is a borrower shopping for, the biggest lie in the market for the lowest rate quote? Lower rates by a lender normally means their mortgage officers are paid less which means either they (the lender) hires new people for their mortgage lending or they hire less experienced mortgage officers. Do you want to put your trust in someone who doesn't know what they are doing or just learning on the job? You may be give up experience for a small reduction in rate or with the banks pay a higher rate and for disclosure purposes they don't have to disclosure their true fees. Borrowers are better off asking friends and family for referrals to a good lenders that way you have some experience thru the referral source. This is a much better process for selecting a mortgage lender.
  • Allen Greenspan | | 13 Jan 2015, 04:17 PM Agree 0
    Yo! CFPB!! If you really want consumers to shop then make the mortgage industry an even playing field! Have the banks fully disclose service release premiums/yield spreads. Until that happens the consumer will NEVER be fully aware of how much money this process is REALLY costing them!
  • John Brown | | 13 Jan 2015, 04:53 PM Agree 0
    home buyers want to know three things. what is my interest rate? what is my payment? how much will I need at closing?
    when trying to explain APR borrowers their eyes would glaze over. it made no difference if the borrower was a blue collar worker or a college professor or an IRS employee. that never changed in the 40 years that I was in the residential mortgage business. the CFPB thinks that overwhelming the borrower with disclosures will solve the problem is silly. well intended but silly. borrowers don't read any of them, and never have, they just want the mortgage approved. the CFPB is raising the costs for consumers due to compliance requirements. but as it is a government agency, it cares not about the cost to the consumer.
  • Wm Matz | | 14 Jan 2015, 03:14 PM Agree 0
    As usual, the CFPB has it backwards. Getting a "good rate" doesn't help if you get the wrong program. The start of the mortgage process whould be a financial plan. THEN [and only then] can the borrower and mortgage adviser determine the right program/rate combination. The continued regulatory emphasis on rates and fees blinds borrowers to the more important part of the decision: the mortgage program that best fits their plans.
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