Changing the way people buy mortgages

A new plan to certify lenders, service providers

The failure of government to fix the deep-seated problems of the home loan market raises the question of whether there is a private initiative that would work better. I believe there is and will spell it out in a series of articles. This is the first.

The challenge

One major problem facing mortgage borrowers is finding the best price for which they qualify. The product and the process are complex and vulnerable to all manner of deception. Some deceptions are so widespread and ingrained that they are part of mortgage banking culture.

It is equally difficult to find competitive prices on required third-party services, including title insurance and mortgage insurance. These and other third-party providers are usually selected by the lenders, who base their selection on the services they receive from the service provider, rather than on the prices paid by the borrower.