 |
 |
Research Shows Borrowers Receive Lowest APRs With Mortgage Brokers
 E-mail Friend
 Printer Friendly
A research study conducted recently by Dr. Gregory Elliehausen
of the Georgetown University Credit Research Center showed that
mortgage broker customers
generally receive a lower APR, or annual percentage rate, than mortgage banker
customers do. Just recently Dr. Elliehausen presented his research findings to a
Federal Reserve Board Conference on the subject. The National Association of
Mortgage Brokers, or NAMB, announced support of Dr. Elliehausen's findings.
NAMB President Bob Armbruster said, "We commend Dr.
Elliehausen's detailed research on this very important topic. We have always
believed that the customer who works with mortgage brokers, especially
NAMB-affiliated mortgage brokers, receives some of the most favorable terms
possible for mortgages. The findings of this report simply prove what NAMB has
known for years."
More findings released in the report are:
- Borrowers obtaining
sub prime mortgages
through mortgage brokers paid lower APRs than those who obtaining sub prime
mortgages from creditors.
- Through competition, brokers tend to pass their origination
cost advantages to the borrower.
- Findings challenge the view that loans from brokers are
more expensive because of broker steering.
- On an overall basis, a price benefit is gained when the
borrower uses a mortgage broker.
- Benefits offered by typical brokers appear to hold through
vulnerable market segments.
|
 |
|
|
|
|
