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- Title
Consumer Confusion in the Mortgage Market: Evidence of Less than a Perfectly Transparent and Competitive Market.
- Authors
Woodward, Susan E; Hall, Robert E
- Abstract
This article discusses some of the characteristics of the residential mortgage market that make it confusing for consumers. The mortgage market is one in which consumers can dicker over the price, but there are two aspects to the price: the interest rate and the amount of upfront cash payments to the mortgage broker or originator. Since consumers engage in the activity of shopping for a mortgage only a few times in their lives, they are at a disadvantage when dealing with brokers and originators who do it on a daily basis. This article looks at mortgage fees and how they vary according to the type of consumer, the originator, and the bank.
- Subjects
MORTGAGE loans; SETTLEMENT costs; MORTGAGE brokers; HOUSE buying -- Costs; LOAN costs; REAL property; FINANCE; CONSUMERS
- Publication
American Economic Review, 2010, Vol 100, Issue 2, p511
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.100.2.511