Volume 2014 - Number 20
May 22, 2014
Lenders Rolling Fees into Rate Sheet Price as Market Moves Toward No-Points Mortgage, Consultant Says
The 3 percent points-and-fees cap for qualified mortgages will likely accelerate an emerging practice of lenders rolling a variety of fees into the rate sheet price as the market continues to evolve toward a no-points mortgage, according to a leading industry consultant. “There has been a shift in the market over the last five years toward zero point loans as lenders build the traditional one percent origination fee into the rate-sheet price,” said Nicole Yung, a managing director with the Stratmor Group, a mortgage banking consulting firm. “This change has been driven by a consumer preference for low up-front costs and the historically low interest rates.” However, there seems...
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