Subprime Lending

HUD: Brokered Loans More Expensive 

Clearly seeking to buttress its proposal to reform the Real Estate Settlement and Procedures Act, the U.S. Department of Housing and Urban Development released a study late Thursday suggesting that brokered loans are, on average, more expensive for consumers than borrowing direct from a lender — and that brokers were pocketing nearly all of the benefits of so-called yield spread premiums for themselves, rather than passing any cost savings on to consumers.