Payless Loans Introduces Novel Fixed Pricing with Prix Fixe Origination™
Parent company NLB seeks to become like Saturn® of online consumer mortgage pricing.
Almost 25 years ago, General Motors rolled out a new car division called Saturn®. It was to be "a different kind of car company." One of the the key things that made it different from the beginning was its pricing formula and what came to be known as the "no-haggle" sales philosophy. Costs were carefully controlled and great pains were taken to adhere to low, bottom-line prices. Details that previously crowded the window sticker price were stripped away, and a single, fair, low price spoke for what were once a thousand tiny haggle points. This was the first step in going where fine French restaurants had gone years before: the Prix Fixe menu. (see below)
Salespeople at Saturn were to be paid no commissions for individual car sales, but rather, employees shared in bonuses for achieving company-wide goals. They had no immediate personal vested interest in persuading you to buy this feature or that, or for that matter, to even buy the particular car you were considering. As word got out that there were no more dreadful high-pressure sales tactics and endless haggling, and on top of that, prices were fair at Saturn, the swell of interest from the public was staggering. That made it easy for Saturn employess to proceed with confidence about facilitating their product sales. As a result of fair prices and fair treatment, Saturn can boast customer satisfaction rates that are the envy of businesses everywhere.
The mortgage industry, on the other hand, cannot claim such success. With a complex roiling boil of costs, detailed forms that describe a mind-numbing array of junk fees (or worse, forms that skip over costs until the very end of the process), hidden surprise expenses, and salespeople who get paid more if they can somehow make you pay more, modern borrowers have become disenchanted with the whole mortgage process. At Payless Loans, we seek to change that, at least for our clients.
Enter the Prix Fixe menu (pronounced "prefix"). It means one fixed price, and a very few really nice choices about what you are buying. Some bright French chefs realized their complex menu items had become both increasingly unintelligible and high-priced, and that the sheer number of dishes their restaurants offered made their kitchens quite costly to operate. They decided to leave the old ways behind and create an entirely new menu regime. They knew people did not want to give up their fine cuisine, and they knew people would pay a fair price for it. But if people didn't know what they were ordering anymore and the traditional a la carte pricing was getting expensive anyway, then customers became increasingly likely to simply stay home. Prix Fixe menus offered a good spread of cuisine for a fair fixed price, kept the clients happy and returning, and by flattening the menu structure, it made the kitchen a better profit as well. Imagine: they cut prices, simplified the lives of everybody involved, and made better profit. Hmmm.
The usual paper forms used in mortgages today describe costs that have become "increasingly unintelligible and high-priced." They contain "a thousand tiny haggle points." Sales representatives (sometimes called Loan Officers) are paid commissions to apply persuasive pressure to close loans, often inducing people to pay more. What can Payless Loans do to "leave the old ways behind"? How can we depart from the rest of the mortgage industry, and create an entirely new pricing regime? Can we integrate the best of both of business models: Prix Fixe fixed low prices, and radically reform the use of sales representatives? Sure we can. We do.
As explained elsewhere ( in Whack-a-mole Lender Fees ), there is an amount we must pay for submitting each loan to a lender or mortgage investor. The calculation of the total of the many little tedious fees for each lender is onerous and variable. In accordance with our committment to offer you easy Prix Fixe pricing, we simplify it down to this:
The Payless Prix Fixe Lender Charge™:
•We must collect a Prix Fixe Lender Charge of $795.
•This passes directly through us to the Lender.
•If you wish, we will help you write the Lender a separate check! You may also receive a refund.
•Our Lender Charge is all-inclusive. Never will you see nickel-and-dime "junk fees" enumerated.
As explained elsewhere ( in Whack-a-mole
Origination ), mortgage companies may charge you
a percentage-based Origination Fee. This means, if their origination is 1.0%
of the loan amount, and your loan is $250,000, their Origination amount that
you would absorb (somehow, some way) would be $2,500. If
the loan is $500,000, you would need to absorb their cost of $5,000. If your loan is $1,000,000,
you would need to absorb their cost of $10,000! Why should you be penalized
this way for the mortgage company doing the same basic work for each loan?
The answer is: you should not be penalized.
To make this percent-based origination case even more incredible,
typically, that percent-based Origination Fee would be incurred in
addition to fees
such as Lender Fees (described above) and Processing Fees (which at Payless
simply do not exist:
see NO Processing
Fees).
In accordance with our strong committment to offer you easy Prix
Fixe pricing,
we simplify our Origination amount down to this:
The Payless Prix Fixe Origination™:
•Prix Fixe Origination of $1,495.
•That is all. It does not matter what size loan you have, that is all you pay on Origination.
•Whether the loan is $100,000 or $1,000,000+, the Prix Fixe Origination™ is always the same.
As suggested elsewhere, put a quick application in the pipeline with us for your comparison, and we believe that often you will be favorably impressed. Try Us Out. Thanks.
