Fees Paid To Brokers By Mortgage Lenders Are Far Too High

Procuration fees paid by some sub-prime lenders are too high.

Fact.

There can be no justification for some of the fees paid by lenders. Proc fees of 2.75%-plus are simply distressing when it is clients who will ultimately pay the terms through an extra burden on the interest rate they pay, be it at the presence end Oregon - as is more than than than than common with some lenders - at the dorsum end after an initial deep discount.

Traditionally, high proc fees were justified by the relative complexness and extent of the work undertaken by the intermediary on behalf of clients with specializer financial needs; for those clients with more heavily impaired credit backgrounds, there was more work so the fee was higher.

But advances in engineering mean value obtaining the required information is now relatively straightforward so how on Earth can lenders still warrant paying fees of 2.75% or more?

Consumer protection is paramount. Those lenders that go on to conceal behind the alibi that the fees they pay impact only on their ain net income and loss accounts are fooling nobody. In the end it's the client that pays.

It's a bad state of personal business when a lender's lone method of attracting business is to pay a high fee.

The sooner the Financial Services Authority aftermaths up and takes a expression at some of the participants in this often cloudy sector, the better.

It's clock for a change and we need it right NOW.