Mortgage originators are making slightly less than they used to on home loans, but don’t worry. They’ll be passing those losses right along to you. According to high-tech mortgage document provider DocuTech, since the start of 2013 median closing costs have increased by 0.4 percent. “The cost of origination has slightly increased,” observed CEO of DocuTech Scott Stucky. Stucky cited increased compliance costs for the rise in the price of loan originations, and said that “due to changing regulations within the industry…these costs [are] now being passed on to the borrower”.
Stucky predicted that “uncertainty looming in the industry will continue to have a direct correlation onto the consumer until a level of confidence is reinforced.” In December 2012, median settlement charges were 2.561 percent of the loan. That number increased to 2.940 percent by the end of March 2013.
by Carole VanSickle