Plus, they have an appetite for servicing that greatly exceeds their internal capacity to satisfy. They have to buy loans from others to maximize the efficiency of their operations. Most independent originators have a jaded view of what No Closing Costs means. They're much better at selling you what you think is best, rather than what is best. Why risk losing you early on by trying to explain something you have never heard of.
Truth is, adding closing cost to the loan is a bad move most of the time.
Financed cost take over seven years to recover and if you had PMI before, increasing the mortgage amount to cover closing cost is going to marry you to it. But, hey, you got a great rate, at least until they're lower. NCC doesn't work in the broad scope that many brokers and lenders must be prepared to operate. Their business is most often dependent upon Realtor or Builder referrals. The objective is closing at all costs, even yours.