The CFPB released a report finding that almost half of consumers do not shop around for a mortgage when purchasing a home. Furthermore, three out of four consumers only submit applications to one lender or broker. Borrowers who are more knowledgeable of the mortgage process and available interest rates are more likely to shop than those who are not.
As part of its Know Before You Owe mortgage initiative, the CFPB is releasing “Owning a Home,” an online toolkit designed to help consumers when shopping for a mortgage. The toolkit provides a guide to loan options, terminology and costs as well as a Rate Checker tool that allows borrowers to find out what interest rates lenders are offering by entering their credit score, location and information about the loan they are seeking into the CFPB website. CFPB Director Cordray has stressed that the CFPB would not retain personal information entered onto the site.
Read the report.
See the Owning a Home toolkit.
See the Rate Checker.
Read Director Cordray’s Speech.