Of course not, but financial products are priced and offered with a financial outcome (usually a margin) in mind. If you make mortgage processing more expensive, you'll find the offers for origination are worse than if mortgage processing were less expensive.

Sorry, it's a ridiculous argument. Mortgages get bought and sold all the time and clearly the buyers are on the hook for the communications costs and these do not pre-emptively get priced into future products by the sellers. I'm sure that there are situations where your argument has merit but this isn't one of those.

No one is saying that existing mortgages would be re-priced. Those are contracts and you can't unilaterally change them. What I and others are saying is that if you changed the obligations of buyers such that mortgages became more expensive to service, that those servicing cost increases would ultimately be borne by the mortgage borrowers rather than eaten by mortgage lenders out of the goodness of their hearts.

> these [communications costs] do not pre-emptively get priced into future products by the sellers

They 100% do get priced in. Whenever you buy a product, you're paying all the costs of that product. When someone originates a mortgage, they're aware of the secondary market for mortgages. If that secondary market is eroded by a significant increase in communications costs, that reduces the willingness of a secondary buyer to bid for your book of mortgages. That erosion reduces your projected profit on originating, so you take a little longer to lower your offered rate to 5.250%, or you charge a bit higher origination fee, or whatever to ensure you maintain a viable business. So long as these fees hit the entire market, the other originators are all making the same calculations.

It seems odd that you [seem to] think that money for these costs would just result in reduced profits for the financial services companies rather than in increased borrowing costs.

> What I and others are saying is that if you changed the obligations of buyers such that mortgages became more expensive to service, that those servicing cost increases would ultimately be borne by the mortgage borrowers rather than eaten by mortgage lenders out of the goodness of their hearts.

I got what you and others are saying but I've been trying - and failing, apparently - to point out that the costs for a mortgage in case of a sale are born by the buyers who are not even the same kind of institutions as the parties that sell them, and so they are in no position to charge the subjects, nor are the sellers going to price the mortgages any higher in the future because the costs aren't born by them.

There is no such thing as 'projected profits' that go into this because mortgages can be sold (and are sold) more than once, the number of times is not known when they are issued first. And it is going to be only a small fraction of the audience that is going to be hard to reach for whatever reason. The presumption that there is some kind of free market mechanism that will ultimately pass those costs back to the original mortgage underwriters is not in any way evidenced by present day mortgage prices. On the sum total of mortgages out there and the - exorbitant - profits they create for the lenders we're talking about such small amounts that it will make zero difference.

A 'significant increase in communications costs' would translate into that being something that is some noticeable percentage of the total yield over the remaining time and it just simply isn't. Typical mortgage rates and amounts utterly dwarf the costs of a one time notification, especially if you don't have to notify everybody like that, and you can try cheaper channels first until you have a hit. Besides, the original mortgage 'service charge' is already a large multiple of the various costs and tends to be mostly pure profit for the initial lender.

It seems odd that you [seem to] think that mortgages are priced such that the mere cost of communications is going to show up in the prices, they are amongst the most profitable financial products.

> On the sum total of mortgages out there and the - exorbitant - profits they create for the lenders we're talking about such small amounts that it will make zero difference.

If it made zero difference, they would Fedex the documents, but they dont.