What does the written list of service providers permit the applicant to do?

A written list of service providers is a key component in the mortgage process as it allows the applicant to shop for settlement services. This means that the borrower has the ability to compare different service providers, such as title companies, attorneys, and escrow services, enabling them to select the options that best meet their needs, preferences, and budget. By having this list, the applicant can make informed decisions based on quality, cost, and service reviews rather than being compelled to use a specific provider chosen by the lender.

This is particularly important in fostering competition and ensuring that borrowers can secure the most favorable terms for their transactions, promoting transparency and consumer rights in the lending process.