Part 2: Changing the way people buy mortgages
Lenders participating in the new network should be certified for their adherence to network rules, which focus on transparency and fairness. They also agree to designate an employee as the ombudsman contact to deal with any disputes that arise with borrowers.
With certification based on operationally defined rules, lenders who don't want to give up exploitative tactics will not join, while lenders who don't employ such tactics are grateful for being recognized and distinguished from the others. Participating lenders will also welcome the prospect of dealing with well-informed applicants, who have been qualified by the network and have a high likelihood of becoming borrowers.
Next week: Assuring competitive pricing of third-party services.
The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.
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