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Real Estate

The Mortgage Professor: Mortgage referral fees: When builders insist you use their lender

The first two articles in this series on referral fees dealt with situations where mortgage lenders were the referrers and collected the fees - from title insurance companies, appraisal management companies, mortgage insurance companies andothers. The Real Estate Settlement and Procedures Act, enacted over 40 years ago to reduce servicing costs swollen by referral fees, has been a colossal failure; settlement costs are as swollen today as they ever were.

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