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  1. Metin
    March 1, 2016 @ 9:16 pm

    I am amused about the naietvy being demonstrated by the CFPB that their zero-zero mortgage pricing will do anything to normalize price comparisons from one company to another. What third party fees will be excluded? will the consumer really understand that a zero-zero mortgage with NO prepayment penalty is not the same as a zero-zero mortgage with say a 7 year prepayment penalty? Will the consumer understand how to compare a zero-zero mortgage with a 30% down payment requirement to a mortgage with points and fees that has a different down payment requirement? Just like the APR nonsense this does little if anything to give the consumer a way to compare pricing of mortgages from multiple lenders.The fact that the CFPB included an option for originators to NOT provide a zero-zero option if the consumer is unlikely to qualify for that option clearly indicates that they understand that lenders may have FAR more rigid underwriting criteria for a zero-zero mortgage. But in reality it is an issue that simply is not of much importance to almost 1/2 of all borrowers. According to the National Association of Realtors studies 48% of home buyers said they NEVER even TALKED to a second mortgage company. This was verified by a separate survey conducted by LendingTree in the fall of 2011. So if consumers don’t have pricing form to sources to compare the CFPB zero-zero price will have little value except the COST of generating these additional quotes .maintaining the records to prove the lender is in compliance with this regulation, etc. WILL be passed on to the borrower in the form of higher fees.


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