News
Brokers
Prove To Be The Better Bet!
(Reported in the May/June 2005 edition of the “New Mexico Mortgage Press-
State Affiliate of the National Association of Mortgage Brokers-NAMB“
by The Mortgage Press, Ltd.)
New Study Shows Consumer Pay Lower Rates With Mortgage Brokers
The National Association of Mortgage Brokers (NAMB) has supported the findings
of Dr. Gregory Elliehausen of the Georgetown Univeristy Credit Research Center.
His findings report that customers who use a mortgage broker have lower annual
percentage rates, on average, than bank customers. Dr. Elliehausen presented
his findings to a Federal Reserve Board conference in early April. In addition
to Dr. Elliehausen, the resport was co-authored by Amanay El Anshasy of George
Washington University and Yshiaki Shimazi of Oklahoma State University.
“We commend Dr. Elliehausen’s detailed research on this very important
topic,” said NAMB President Bob Armbruster. “We have always believed
that customers who work with mortgage brokers, especially NAMB-affiliated mortgage
brokers, receive some the most favorable terms possible for mortgages. The findings
of this report simply prove what NAMB has known for years.”
The conclusions of the report are:
1. Estimates indicate that borrowers obtaining sub-prime mortgages through brokers
paid lower APR’s than borrowers obtaining sub-prime mortgages from creditos.
2. The results support the hypothesis that, through competition, brokers tend
to pass their origination cost advantages to the consumer.
3. The results challenge the view that loans from brokers are more expensive
because of broker steering.
4. Although the report’s findings will not apply to every individual case,
there is an overall price benefit to using brokers.
5. The benefits of brokers also appear to hold for vulnerable market segments.
“For consumers, working with a mortgage broker who is affiliated with
NAMB is akey tool to help protecet oneself against fraud or abusive lending
practices.” adds Armbruster. “The more consumers know what resources
to use, the better informed they will be in getting the best mortgage possible.”
Gary Miller, President
Divine Abundance, Inc.
d/b/a Citivest Mortgage
128 Grant Avenue Suite 114
Santa Fe, NM 87501
Tel: 505-982-9530
Fax: 505-820-2800
"Character is doing what is right when nobody's looking." —
JC Watts, Jr.
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