I just posted an interesting thought I had over at Patrick.net. I would like to open it up here for discussion also.
“We need to incorporate a system to reduce closing costs as well. There are so many hidden fees and processes in the closing, it is clearly encouraging fraud.
Perhaps have a standardized closing process at greatly reduced cost. If the sellers/agents/brokers/banks don’t want to use it, then no sale.”
I would be all for that sort of system – trying to compare potential loans is an exercise in frustration, because different lenders use different terms for the same thing. And the prices are all over the map.
Any loan officers or mortgage brokers out there that want to comment? How do real estate agents feel about a streamlined system?
I run the retail division of a mid-sized mortgage company. We use something called a FixedFee which is simply our cost plus all 3rd party fees (keep in mind we control escrow).
There are many companies that use similar models and guarantee all costs up front.
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