NAMB Touts Findings on Broker APRs

The National Association of Mortgage Brokers is touting the findings of recent academic research on the price advantages of working with mortgage brokers.The research, presented at an April 7 Federal Reserve Board conference by Dr. Gregory Elliehausen of Georgetown University, found that the average borrower obtaining a subprime mortgage loan from a broker has a lower annual percentage rate than the average borrower obtaining a similar loan from a mortgage lender, the NAMB reported. According to the association, the research supports the hypothesis that "through competition, brokers tend to pass their origination cost advantages to the consumer." Dr. Elliehausen is with Georgetown University's Credit Research Center. The association can be found online at http://www.namb.org.