Sub-Prime Florida Home Loan Applicants Should Consult with a Broker

We’re not just saying this to drum up business. A new study confirms that borrowers with a poor credit score save more money by speaking with a Florida mortgage broker before taking any action.

A joint study released by economists at George Washington and Oklahoma State universities states that brokers are more cost-effective in this situation.

The report compared sub-prime Florida mortgages originated by brokers and traditional lenders between 1995 and 2003. Its findings reveal that the reason brokers originate more than 50 percent of all residential loans is because they are a more efficient option for consumers.

“Brokers are small business men and women who have to be competitive to remain in business,” said NAMB President Harry Dinham. “The hard data in this report is a clear sign that this competition is benefiting consumers in the sub-prime market.”

Dinham said that some groups have tried to use anecdotal evidence to accuse brokers of encouraging consumers to choose loans that are more profitable for the originator. This process of “steering” is simply fale.

The study notes the following:

“The evidence does not support the hypothesis that customers of brokers generally pay higher prices than customers of lenders because of steering … One can conclude only that in the sub prime market brokers’ customers generally paid less than lenders customers.”

“Unlike many of the largest lending institutions, most brokers are members of their community who help originate loans for the same people we spend time with at Kiwanis Club meetings and Little League games,” said Dinham. “Our reputation is the heart of our business and it only makes sense that we would do everything in our power to make sure our customers are treated fairly.”

We feel the same way. Those without a perfect credit score should consult with Florida home mortgage experts in order to take advantage of their knowledge.