Industry NewsMortgage

RateSpeed rolls out mortgage pricing tool

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A new mortgage pricing tool, RateSpeed.com, went live this week promising to show consumers wholesale rates and yield spread premiums lenders pay to mortgage brokers -- without asking for their personal information. Participating loan originators and mortgage brokers must also disclose their fees, ensuring a transparent process, said developer Jeff Corbett. Consumers are asked to provide their e-mail address and fill out 19 information fields about the prime, alt-A or subprime loan they are seeking. In return, they get back five pricing options in loan categories, including 30-year fixed-rate, 15-year fixed-rate, 5-year adjustable-rate mortgage (ARM), and 3-year ARM. The five options allow borrowers to choose whether they want to "buy down" their interest rate or pay more than the par rate in order to earn a yield spread premium -- cash rebates that can be applied to their lender's fees or other closing costs. "We don't sell leads or charge for the traffic t...