* Dr. Gregory Elliehausen of the Georgetown University Credit Research
Center presented his findings to a Federal Reserve Board Conference on
Thursday, April 7th
* Co-authors included Amany El Anshasy of George Washington University
and Yoshiaki Shimazaki of Oklahoma State University
MCLEAN, Va., April 7 /PRNewswire/ -- The National Association of Mortgage
Brokers (NAMB) today announced its support of the findings of Dr. Gregory
Elliehausen of the Georgetown University Credit Research Center. The report
stated that brokers' customers have a lower APR, on average, than bank
customers. Dr. Elliehausen presented his findings today to a Federal Reserve
Board Conference.
"We commend Dr. Elliehausen's detailed research on this very important
topic," said NAMB President Bob Armbruster. "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."
The conclusions of the report are:
* Estimates indicate that borrowers obtaining subprime mortgages through
brokers paid lower annual percentage rates than borrowers obtaining
subprime mortgages from creditors.
* The results support the hypothesis that through competition, brokers
tend to pass their origination cost advantages to the consumer.
* The results challenge the view that loans from brokers are more
expensive because of broker steering.
* Although the report's findings will not apply to every individual case,
there is an overall price benefit to using brokers.
* 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 a key tool to help protect oneself against fraud or abusive financial
practices," adds Armbruster. "The more consumers know what resources to use,
the better informed they will be in getting the best mortgage possible."
The National Association of Mortgage Brokers (NAMB) is the voice of the
mortgage broker industry with more than 24,000 members in all 50 states and
the District of Columbia. NAMB provides education, certification and
government affairs representation for the mortgage broker industry, which
originates the majority of residential loans in the United States.
| |
SOURCE National Association of Mortgage Brokers
 back to top
CONTACT:
Karen Tyson of the National Association of
Mortgage Brokers, +1-703-610-0260
| |
|
