Flat Fee Mortgages? Or Plain Ole Customer Service? Which would you prefer?

I was reading a few articles about this whole “Flat Fee Mortgage” concept and I seem to be a bit torn.

• On the one hand I can see how the Flat Fee Mortgage would prevent unscrupulous mortgage brokers from getting the borrower the loan that makes the broker the most money, regardless if it is the best home loan for their client.
• On the other hand, what happened to customer service ethics, where you make more money (in the long run) for giving the best service (and the best home loan rates) to your client, without looking for the loan that makes the broker the most money.

I disagree that it would benefit the entire home mortgage market with legislative action or laws being put in place that limit the mortgage broker fees. You never have nor never will be able to legislate the heart into doing what is right.

So what is a flat fee mortgage?

A flat fee mortgage is when the mortgage broker is a paid a flat fee for their time and expertise. This method allows the mortgage broker to truly find the best and least expensive mortgage for their client. The mortgage broker is paid a flat fee to research, find and execute a mortgage package. These can be done at wholesale rates with NO yield spread and no backend compensation from lenders. The broker quotes a fee for their time and expertise and is paid that fee and nothing more.  Read entire article at mortgageblog.com