Industry NewsMortgage

BofA waives private mortgage insurance on ‘no-fee’ loan

Consumers may find loan hard to measure against others

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Bank of America is expanding the definition of "no-fee" mortgage loans with a product that pays lender fees and doesn't require private mortgage insurance for those who want to put as little as 5 percent down on a home purchase. "There is no catch, and there are no surprises" to the loan, which can save borrowers more than $3,000 in fees on a $200,000 loan, BofA officials said Monday as they launched a national campaign to promote the "No Fee Mortgage PLUS" loan. The loan pays loan origination, appraisal, title and flood determination fees, and comes with a 25-day, "close-on-time" guarantee, eliminating surprises at the closing table, the company said. In a conference call with reporters, BofA officials avoided the question of whether they would be recouping those expenses by charging a higher interest rate or points for the loan. "It's not about interest rates, it's about value," said Floyd Robinson, BofA's president of consumer real estate, when asked whether the loan would carry a h...