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Article: Lending Fees Cost Consumers Money
- Article from:
- AP Online
- Article date:
- January 8, 2002
- Author:
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Title: Lending Fees Cost Consumers Money
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WASHINGTON (AP) _ Beatrice Hiers, a single working mother who struggled
to buy her home in Fort Washington, Md., relied on a mortgage broker
to find a good deal for her. But she ended up paying a higher interest
rate than what she qualified for while the broker collected $10,800
in fees, including $4,538.87 from the lender for getting the higher
rate.
The practice of brokers receiving special incentive fees from mortgage
lenders, often not disclosed to borrowers, can be abusive and cost
consumers thousands of dollars, Sen. Paul Sarbanes, D-Md., chairman
of the Senate Banking Committee, said at a hearing ...