NEW YORK – After years of enjoying record volume, home mortgage lenders are now offering incentives like reduced fees to offset a decline in business, putting their bottom line at risk.
These incentives in combination with mortgage rates, at lows not seen since April, are sure to attract home buyers and those looking to cut borrowing costs by refinancing. But it remains unclear if they will help lenders stem a drop business after years of record growth.
“That is normal in a post-refinance period. You see people cutting prices in order to maintain market share,” said Douglas Duncan, chief economist at the Mortgage Bankers Association. “They compete as long as they can by lowering prices.”
Brokers like John Svirsky of Garrison, New York and Steve LaDue, head of Affiliated Mortgage in Wauwatosa, Wisconsin, resell their home loans to large mortgage banks and, lately, these lenders have slashed fees for home loans to capture market share.
For this complete story, please visit Brokers Haggle for Business as Home Buyers Benefit.
