Today, roughly 60 percent of home loans are done through mortgage brokers, who negotiate their fees one-on-one with borrowers. Brokers have the advantage of experience and skill, plus information about wholesale terms that are unavailable to the borrowers. Borrowers can pay cash for all...

Mortgage loans are leading examples of transactions where experts on one side of the market take advantage of consumers' lack of knowledge and experience. We study the compensation that borrowers pay to mortgage brokers for assistance from application to closing. Two findings support the...

Mortgage loans are leading examples of transactions where experts on one side of the market take advantage of consumers' lack of knowledge and experience. We study the compensation that borrowers pay to mortgage brokers for assistance from application to closing. Two findings support the...