On January 13, 2015, the Consumer Financial Protection Bureau
(CFPB) released a report on consumers' mortgage shopping
experiences. The CFPB found that almost half of consumers who
take out a mortgage fail to shop prior to application and that
consumers seriously consider only a single lender or mortgage
broker before choosing where to apply. The CFPB also found
that the primary source of information relied on by consumers is
their lender or broker, followed by a real estate agent.
According to the CFPB, such consumer behavior leads to negative
consequences, namely, "failing to shop means money lost for
consumers," and "while lenders and brokers can be
valuable resources [of information], they have a stake in the
selling of the mortgage, so what is best for the lender or broker
is not always best for the consumer." The CFPB has also
concluded that consumers are more likely to shop around if they are
informed and familiar with available interest rates.
