Rate sites and cancellation fees are nothing new but one leading broker has merged the two with his new website that allows clients to self-direct the mortgage process but may also charge them a fee for fleeing.
“On the DIY model, a $295 cancellation fee may apply where folks request an approval, we obtain that approval as instructed, and then the individual cancels the mortgage application,” Rob McLister said of his IntelliMortgage website. "In practice, cancellation fees are rarely charged … but they serve an important function in offsetting processing costs and maintaining lender efficiency ratios, both of which help us deliver the best possible rates to consumers."
It drums up an interesting debate and it begs the question: If you use rate sites do you believe cancellation fees are a good way to recuperate for lost time in the wake of a fleeing client?
to have your say.
Have your say: Would you consider charging a cancellation fee for rate site clients?