In theory, consumers are meant to have knowledge about the products they are comparing. This knowledge helps them evaluate not only the object or service but other features such as reliability, consistency, or quality. On straightforward goods which are frequently consumed, this maybe reasonable. McDonalds’ success is in part due to the franchise’s ability for a consistent product.
But many services, in particular, are not so easy to evaluate.
Take the example of obtaining a mortgage. There is a spectrum of providers from online folks like Rocket Mortgage, to brokers who place loans with investors, to in-house lenders at the national banks. And each of these outfits advertize slightly different pricing.
Consumers often check with a couple and select the one with the lowest fees and rates. But do they have full knowledge of what they are buying? Without understanding the process of collecting information, verifying the financial information, submitting the documentation through the underwriting process, and tackling any bumps along the way, the consumer may not be able to interview the service provider to understand if they can complete the task with the proficiency needed for their particular situation.
The front-end people who are mainly responsible for pulling customers into the process are likely to answer affirmatively about their capabilities and performance. Underwriting guidelines can be vigorous. If you need something to fill your time, have a look at HUD’s handbook on FHA loans. The logistics of the underwriting process is not the only step in the chain of events that leads to a successful home purchase closing. There are appraisers, processors, and title closers who also have a hand in making the mortgage possible.
A successful loan officer plays a supervising role over all these functions.
Home Economics 