Google launches integrated mortgage calculator

[Update 1 – Updated with actual image of Google mortgage calculator in action, see image below]

Lenders unhappy with the Consumer Financial Protection Bureauthe new mortgage payment calculator will soon have a new target for their wrath, Google (GOOG).

That’s because the Internet research monolith very quietly began rolling out its own mortgage payment calculator on Tuesday. The built-in mortgage calculator will apparently appear when a user searches for terms such as “mortgage calculator”, “loan interest calculator”, and “interest calculator”.

The native mortgage calculator was first spotted by HousingWire searched for Google’s mortgage calculator and found it on an Android phone.

We also captured a screenshot of the tool in action:

While Google’s mortgage calculator rollout appears to be limited so far, Google has shared some news on the mortgage calculator on its Google+ page.

“Preparing for homeownership just got a little easier,” the post from Google reads. “Starting today, you can ask Google things like ‘How much can I borrow at $ 200 per month? Or ‘At 5% APR, how much can I borrow over 10 years?’ You can even adjust the mortgage amount, interest rate, mortgage term, and more to see which financial options suit your needs. “

Google even included a screenshot of what its mortgage calculator looks like on a mobile phone. Click on the image below to see what Google’s mortgage calculator looks like.

Google Mortgage Calculator

Google’s foray into mortgage calculus follows CFPB’s controversial “borrower education tool”. As part of the “Own a Home” tool for consumers, CFPB included “Checkout Rate”, which it presented as a tool to help consumers understand what interest rates may be available to them by. using the same subscription variables that lenders use on their internal accounts. rate sheets.

“In other words, we give consumers direct access to the same kind of information as lenders themselves,” CFPB director Richard Cordray said at the time.

The CFPB tool has aroused anxiety among mortgage lenders, including the Mortgage Bankers Association. The MBA suggested that the rate checker mention the rates and costs without including the disclosure items. The TILA-RESPA rules and the CFPB mandate for borrowers – annual percentage rate, closing costs, etc.

In essence, the mortgage bankers have said that if the rate checker is a lender ad or a mortgage calculator, it will be violating CFPB disclosure rules.

“This prepares borrowers for serious disappointment,” David Stevens, President and CEO of the Association of Mortgage Bankers, says HousingWire. “It should be removed. “

Stevens says the tool does not notify borrowers of a host of other costs that lenders are required to disclose under TILA-RESPA, such as closing costs, APR, and other fees and commissions. Stevens added.

“This tool has none of that. It doesn’t give borrowers any of that, ”Stevens said. “It could allow lenders to gauge the bait of the market.”

The third-party tool offers accurate but incomplete information, Stevens added.

CFPB’s response, in a note to HousingWire, was unequivocal. The rate checker doesn’t come down.

“The Rate Checker is an educational tool and part of a larger suite of tools to help consumers be more informed and effective mortgage buyers. The rate checker doesn’t connect consumers with lenders, ”a CFPB spokesperson told HousingWire.

Other details from Google Mortgage Calculator such as whether feature details on closing costs, fees, etc. are currently unknown, but HousingWire will continue to monitor the situation to see if Google’s mortgage calculator becomes a permanent feature or just a flash in the digital pan.

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