MANY BUYERS DON’T COMPARISON SHOP FOR A MORTGAGE


Many buyers don’t comparison shop for a mortgage

WASHINGTON, D.C. – Jan. 13, 2015 – The Consumer Financial Protection Bureau (CFPB) released a report on mortgage borrowers, and it found that almost half of consumers don’t shop around for a mortgage when purchasing a home.

In tandem with the report, the CFPB released “Owning a Home,” an interactive, online toolkit designed to help consumers shop for a mortgage. It says the suite of tools gives consumers the information they need to get the best deal.

“Consumers put great thought into the choice of a home, but the mortgage process continues to be intimidating,” says CFPB Director Richard Cordray. “The Know Before You Owe Owning a Home toolkit makes it easy to see how shopping for a mortgage can translate into big dollars saved in the long run. We want to enable consumers to be more savvy shoppers.”

Today’s report is based on results from the new National Survey of Mortgage Borrowers, a voluntary survey jointly conducted by the CFPB and the Federal Housing Finance Agency (FHA). The Bureau analyzed responses from consumers who took out a mortgage to buy a home in 2013. Among the key findings:

  • Almost half of consumers fail to shop prior to filling out an application for a mortgage. This means these consumers are seriously considering only a single lender or mortgage broker before choosing where to apply.
  • Three out of four consumers only apply with one lender or broker: While half shop around to see which lender advertises lower rates, fewer than one out of four borrowers apply to more than one as a way to compare bottom line rates and their best deal.
  • Most consumers get information from lenders or brokers, who have a stake in the outcome: 70 percent said they relied on their lender or mortgage broker a lot for information about mortgages.
  • Borrowers who prioritize the terms of the loan over the characteristics of the lender are more likely to shop around
  • Consumers who are confident in their knowledge about the mortgage process are more likely to shop around: 55 percent said they were very familiar with mortgage rates, while 30 percent of shoppers said they were not at all familiar.

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© 2015 Florida Realtors®


About Brian Heafy

After a 30 year career in the information technology/professional services industry Brian began his second career as a real estate professional in 2012.

Brian began his career in 1982 with the United States Marine Corps as a systems analyst providing software project management and implementation services to Marine Corps Aviation Logistics Squadrons in Iwakuni, Japan and later as a defense contractor assigned as lead technical program manager to the Navy Management Systems Support Office in San Diego.

Brian went on to serve as technology manager for the City of Coral Springs, then joined a publicly traded government (ERP) software and professional services provider in Lake Mary, Florida as VP of the company’s Public Safety & Justice Systems group where he and his teams supported over 450 small, medium and large Police, Fire, Courts and EMS agencies across the U.S. and Caribbean. Brian also served in technology management positions supporting commercial off the shelf software enterprise resource management systems finance and administration application software and public safety and justice systems application software projects for the City of Orlando and Orange County Clerk of Courts.

Brian’s in-depth understanding of governmental operations and contract management is a benefit to his real estate clients, so much of what gets accomplished in today’s real estate industry deals with understanding government databases, brokerage disclosures, banking and governmental regulations each with their own set of established procedures – at all levels of government (local, county, state, federal).

Brian holds a Bachelor’s degree in Business from Barry University. A Licensed Florida Real Estate Broker and member of the Greater Orlando Regional Realtors Association, member of the Marine Corps Association and former Web Sergeant for the United States Marine Corps League in Orlando, Florida. A native Floridian Brian and his wife Yoshiko have been married over 32 years and have two grown children.