We conduct an empirical investigation to explain observed differentials in mortgage overage pricing. Our analysis makes several contributions. First, we study an area of mortgage pricing that is little understood by consumers and has received little scrutiny in the literature. Second, we...

Overages, or yield spreads, are common in the pricing of mortgages. However, few customers realize that such yield spreads exist. Given that overages often constitute a significant portion of the income of the mortgage loan officer, one would assume that the loan officer seeks to maximize the...

Mortgage overage pricing is little understood by consumers and has received little academic scrutiny. We consider the impact of the market power of individual loan officers on overages paid by borrowers, particularly minorities. We include numerous borrower and lender characteristics unavailable...