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Mortgage broker often receive kickbacks from lenders in return for steering consumers into more expensive loans - a problem that the Federal Reserve failed to address. Paste this link into your favorite RSS desktop reader See all CNNMoney.com RSS FEEDS By Les Christie, CNNMoney.com staff writer NEW YORK (CNNMoney.com) -- Mortgage brokers are getting paid fat fees by lenders to put unsuspecting borrowers into expensive loans. And the new lending rules issued last week by the Federal Reserve do nothing to stop this abusive practice. The Department of Housing and Urban Development estimates that this practice cost borrowers $16 billion in 2007 alone. "This remains a serious problem," said Howell Jackson, a professor at Harvard Law who has testified before Congress on the subject. "It increases the cost of borrowing for lots of... [read full story]
