It does all hang on their concept of the "guaranteed settlement cost package" to the applicant. So long as the borrower/applicant is quoted "final" numbers of interest rate and then closing costs, and they ACCEPT that quoted package number, then whatever else happens behind the scenes with mark-ups and over-charges and bonuses is off-the-table, so to speak. The borrower will not have any leverage to disagree with their practices later on. So, who's left to disagree with what's going on ? ....the lenders, their lawyers and those who right the rules. Where do we fit in ? We are simply insisting that we get the $300, $350, $400 respective of the work we might do. "They" want us to accept $150, $200, $250 so that when the borrower sees the appraisal fee on the laundry list of closing costs that number may not seen too high to them (borrower), and as such, raise no questions. When we do not agree to the un-fair fee for our service....they willingly go to the appraiser who will do it for cheap, or use an alternative "valuation" product sourced from an ever-growing pool of available options. What the borrower assumes, and may never know, is that the alternative valuation product may be quite detrimental in that it has provided no protection at all. We have all had situations through the years when a certain client may express as subtly, yet emphatically as possible, that we should not discuss OUR fee (from lender) with the homeowner. I've often wondered why some clients will get so bent-out-of-shape when we propose receiving c.o.d. from a homeowner. No doubt, it rocks the entire boat with respect to money already collected from them, or that in our mention of it to the h/o the secret about overcharges has a chance of surfacing. Of course, we are just one little cog in the big wheel.....and yet it can be so plainly evident that our cog is rendered being of such minimal significance. .....As we start another week in paradise.
