A new study from the Georgetown University Credit Research Center contradicts the commonly held notion that it costs more to use a mortgage broker than a banker.
The report, announced by the 24,000-member National Association of Mortgage Brokers and conducted by Georgetown's Dr. Gregory Elliehausen, said brokers' customers have a lower annual percentage rate, on average, than bank customers.
Elliehausen reported presented his findings today to a Federal Reserve Board Conference.
Even subprime borrowers that used a mortgage broker paid lower APRs "than borrowers obtaining subprime mortgages from creditors," according to the announcement.
"We commend Dr. Elliehausen's detailed research on this very important topic," said NAMBs President Bob Armbruster in the announcement. "We have always believed that the customer who works with mortgage brokers, especially NAMB-affiliated mortgage brokers, receives some of the most favorable terms possible for mortgages."