By Kathleen M Howley | Bloomberg Business
Competition among lenders has been good for U.S. homebuyers.
The average mortgage-origination fee fell 22 percent in the 12 months through June to $1,041 as nontraditional lenders gave borrowers more options, pushing banks to make concessions to stay competitive, according to an annual survey by Bankrate Inc. Charges are declining even as banks struggle with costly regulations spurred by the 2008 financial crisis, said Greg McBride, Bankrate’s chief financial analyst.
“The new players entering the market are forcing established lenders to cut fees even though compliance costs for everyone are going higher,” McBride said in an interview. “Lending standards haven’t changed much, so this is really the only way they can compete.”
