We all know that the Consumer Financial Protection Bureau is in business to help the little guy (the borrower, that is) but why isn’t it taking a close look at underwriting guideline ‘overlays’ being hoisted upon the industry by the megabanks? These “extra” charges, of course, go straight to the bottom line – and it’s occurring at a time when the megabanks are posting record profit margins on residential originations. Some in the industry may like the practice because they too are profiting while others don’t want the young agency doing any more regulating of any kind. But as any mortgage applicant buying a home knows: the days of ‘no closing’ cost loans are gone forever. (Probably.)
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