Monday, January 15, 2007

LowerFees: Discount store for settlement services

Marcie Geffner writes about LowerFees.com on Inman News today. The new firm hopes to bring some transparentcy to the industry by allowing home borrowers to shop for settlement services online.

I've written about a number of companies in the past that were working toward making the home buying and financing transactions more consumer-centric. There seem to be a number of inherent barriers.

In the case of this firm, Ms. Geffner sums it up very nicely.
However, where Lowerfees.com seems to have missed the mark is in its obsession with "lower fees," rather than meaningful information about settlement products and services, and what differentiates providers and their products from one another. Commodities are sold on the basis of price, and are subject to intense price competition because there is by definition no other basis of
differentiation -- commodities are identical by nature.

Well said. Transparentcy does not equal commoditization.