Put Me On The List!

Loan originators concerned of how to keep fees below the 10% tolerance variances?  Let the consumer pick the provider!  Once the consumer selects the vendor, then the 10% fee tolerance no longer applies.  Should lenders discourage consumers from selecting their own service providers?  Absolutley not!  Not ever.  I don't think anyone would go on record in favor of LESS consumer involvement.  So, why would an originator purposefully set up the 10% tolerance hurdles if they don't have to?  If you're an originator, encourage consumer involvement by promoting comparison shopping.  If the borrower selects a provider other than the one identified on the GFE, you have one less thing to worry about.  If you are the customer of a loan originator, show the value of your services beyond a "bottom dollar" approach.  Most settlement services (whether termite inspections, home inspections or closing services) are usually like anything else in life...you get what you pay for.