United States | News & Politics

Over the past several years, millions of Americans have faced a similar choice as commercial banks pulled back from the $12 trillion US residential mortgage market. They left borrowers to navigate an opaque and complex financial ecosystem dominated by nonbank lenders that don’t take deposits like traditional banks, operate mostly online and are subject to fewer federal regulations. These lenders depend on fee income more than banks, and they often work with independent service providers, including mortgage brokers, which can add to borrowers’ costs. The result: Homebuyers with the least means, often Black or Latino, pay higher fees.