The charge is not refunded if the customer walks away from an accepted bid. Unlike Priceline's other businesses, its mortgage service relies on applicants who have already done enough homework to know what they want and what terms they can reasonably expect. Armed with information, though, Priceline customers will gain great flexibility, according to Theodore Iacobuzio of the Tower Group. They will probably save money, too, unless they can strike a deal with, for example, a local bank that throws in a free checking account or other services. Priceline is not as free of added costs as borrowers might think, Pickel said, because lenders must add to their rates or points the fees they pay to Priceline but which the service does not disclose.
Mortgage brokers collect fees in similar ways.