Please explain the mortgage information cartel

[Manton]

1) Why is it impossible to check rates online? I know you can do it in a general way, but to learn anything specific, you have to enter reams of personal info, and then they will "get back to you"--meanwhile selling all your info to every spammer in the universe. Is tehre some effective cartel that builds walls around this information?

2) The last time I checked into this, I was able to get the info by calling around. It was inefficient but I did at least get the info. No longer. People will not tell me on the phone. Send us all your info and we will call you back. No thanks.

What gives?

 

[SkinnyGoomba]

Likely because your credit has a large effect on it. You can find the average rate pretty easily on bloomberg.
http://www.bloomberg.com/personal-finance/real-estate/

 

[Manton]

Well, how hard would it be to make a website where you could input your credit score?

The averages are worthless, there is too much variation for a variety of reasons.

Honestly, it's like calling a store and asking "What's the price of X?" and being told, "Send us your name, address, SSN and tax returns, and we'll call you back in a few days." Really outrageous.

 

[SkinnyGoomba]

Well, on the other side of it, who wants to be held to unreliable information?

 

[Manton]

What would make it unrealiable?

There are a handful of variables: home value, loan amount, credit score, zipcode, really those four. Anyone in the business knows instantly what today's rates are and can run the number instantly if they want to.

Obviously they don't want to, they want to extort personal info. What I don't understand is why some entrepreneur has not been able to break the cartel with a very simple website.

 

[texas_jack]

Just go talk to a mortgage guy. They're sales people so they're happy to have you waste their time.

 

[TiberiasUSA]

What would make it unrealiable?

There are a handful of variables: home value, loan amount, credit score, zipcode, really those four. Anyone in the business knows instantly what today's rates are and can run the number instantly if they want to.

Obviously they don't want to, they want to extort personal info. What I don't understand is why some entrepreneur has not been able to break the cartel with a very simple website

Loan product?

conforming vs non conforming, fixed or arm, FHA, VA

then within ARM, you have your 5/1, 7/1 10/1 Libors then other ones with different adjustment periods etc.

Then throw in the mix term, 15 years, 10 year, 20 year, 30 year etc.

then the amount of points

refi vs purchase,

occupancy: owner occupied vs rental

dwelling type: sfr vs condo vs 2-4 unit

relationship with the lender

lots of variables, would be hard for someone to quote you, plus if i was a sales guy i'd want you in my office so we can discuss what you are looking for and what would suit your needs then close the sale

 

[Manton]

All this could easily be enabled on a website. And it still doesn't make sense why they won't tell me on the phone.

It's the age of "big data." everyone has google/facebook envy, so even if the transaction is, you give them money, they give you product/service, even just to get a price quote in 2013, you have to turn over all your commodized personal information.

Yet another sign of the corruption of our times.