junk-fees Tag

21 Jul Junk Fees–A Profit Center for Your Mortgage Servicer

This weekend the New York Times published an article about the increased debt load carried by many Americans, and did a great job of explaining one of the primary reasons for the continuing mortgage and credit crisis, and why junk fees are increasing the cost of your home mortgage.
[B]ehind the big increase in consumer debt is a major shift in the way lenders approach their business. In earlier years, actually being repaid by borrowers was crucial to lenders. Now, because so much consumer debt is packaged into securities and sold to investors, repayment of the loans takes on less importance to those lenders than the fees and charges generated when loans are made.
Read More