"It's like double dipping. There's no purpose for both these fees other than to pad profit."
"Naive homebuyers must keep an eye out for add-on fees that hike payments" by Michelle Singletary | August 3, 2008
A little-known provision in the Housing and Economic Recovery Act, recently signed into law by President Bush, is supposed to help homebuyers understand how much debt they are taking on to purchase their home....
Warren advises borrowers to watch for multiple fees that essentially cover the same service, although they may be described in different terms, such as an "administration" or "underwriting" fee. If a borrower asks enough questions they may find the fees - $800 to $1,200 in some cases - are often for the same thing.
"It's like double dipping," she said in an interview. "There's no purpose for both these fees other than to pad profit."
--MORE--"
