Realtor networks quietly add thousands to mortgage costs for some homebuyers

A new study shows how realtor-loan officer referral networks affect mortgage prices. These networks steer homebuyers to specific loan officers, making mortgages thousands of dollars more expensive for borrowers, especially minority and financially constrained households.

For years, people assumed competition among mortgage lenders would keep rates low. This paper shows that referral networks quietly undermine that competition. It means some homebuyers, particularly those already facing financial hurdles, pay thousands more for their homes without realizing it.