- This week we reported on the Consumer Financial Protection Bureau’s (CFPB) inquiry into mortgage “junk fees” that are typically added onto closing costs. Launching a formal inquiry into the issue, CFPB filed a Request for Information notice that was published June 6 in the Federal Register. According to the report, from 2021 to 2023, median total loan costs for home mortgages increased by over 36%, according to a CFPB analysis. In addition to higher home prices and mortgage rates, these mandatory borrower fees add even more strain on household budgets and families’ ability to afford a down payment, the CFPB said. Lenders have mixed reactions to the inquiry.
- An in-depth report on loan officer attrition this week revealed that nearly half of all producing loan officers in the U.S. have left the industry since 2022. The report looks at mortgage companies big and small that have laid off tens of thousands of people in that timespan. With more people working remotely since the coronavirus pandemic, news of these cuts are increasingly delivered to dozens at a time, unceremoniously, over Zoom or video conferencing.
- A LendingTree report out this week showed that over half of homebuyers don’t shop around for a mortgage, but those who do get better rates. Specifically, 54% of buyers who took out a mortgage for their most recent home purchase received just one offer from one lender, 22% got two offers and 17% got three. According to LendingTree’s senior economist Jacob Channel, “Different lenders can offer different rates to the exact same borrower, and with that in mind, the first rate you’re offered may not be the lowest one you can get.” Read our full report here.
- Our weekly look at mortgage applications from Mortgage Bankers Association and the average 30-year fixed mortgage rate issued by Freddie Mac, shows rates came down a bit and in turn, applications were up. The average mortgage rate landed at 6.95%, a second week of declines albeit small decreases.
Mortgage Mix: Bureau Takes Aim at ‘Junk Fees,’ Rates Dip Down Further
Share This Post Now!
