I don't understand how lenders get to make choices like this.
It would seem to me to not only open the door for processing errors because someone forgets forgets who does what when. It leaves the bank open for borrowers wondering how come 'he got to choose and I didn't?' Or worse yet, 'Jim let me choose but Bill won't? What gives?' I'd get a bank wide policy on it and make everyone stick to it.
Beyond that, who's preparing the lists Jim is giving out? Does it have the same companies that Bill is insisting the borrower use?
Too many potential pitfalls here and the examiners haven't even walked in the door to give you their 'opinion'.
Not good business practice, imho.