DISQUS

Brian Brady · 1 year ago

I'm trying to figure this out, Morgan. I LOVE what Zillow is doing but I'm wondering if I have the time to be a Zoriginator.

My concern is that they have completely ignored the advice component of mortgages. Now, especially, we need better advice for consumers.

morganb · 1 year ago

Great point Brian. I'm concerned that people of your caliber won't find the random solicitation of loan quotes via GFE submissions an effective use of your time. I do love the consumer-advocacy and transparency pieces of the platform with their funding and large audience base I believe they can change the expectations people have when shopping for a mortgage.

Tom Vanderwell · 1 year ago

I'm with you on that one. I think the reason that some of us are busy (I'm up 40% from last year) is because, as Brian says, we need better advice for consumers.

I don't expect I'll have time to be a Zoriginator as Brian calls it. I don't think I want to be an order taker either.

Ann · 1 year ago

IT is a nice tool..however..it doesn't really change the credit market as it exist today...For many borrowers who might think it is a easier way to get a loan may find that the rejection is still the same just now its by email instead of by mail or phone...

Shame Zillow didn't have this working a few years ago....

morganb · 1 year ago

I agree Ann, hopefully this builds a new paradigm for the way people expect to shop for mortgages. Then, regardless of the market they'll set the expectation across origination channels and we'll all be better off because of it. If any one private company has enough sway in this area it's Zillow. I hope they can pull it off even with the down market.

Ann · 1 year ago

I agree Morgan...Zillow has come a long way...anything that can help this industry now would be a good thing..especially for the brokers and consumers...

Bob · 1 year ago

"Don’t provide lowball loan quotes and teaser rates to intentionally draw in a borrower and then “readjust” your quote. "

With the incredible volatility in this market and rates changing constantly, what constitutes a binding quote? Last time I checked, it meant locking the loan. How do you do that with an anonymous borrower? I think all you are going to see are ticked off consumers who feel they got the bait and switch when in reality all that happened is rates changed from one day to the next, or from morning to afternoon.

Shaliesh Ghimire · 1 year ago

This could work for some but not all. I think "mortgage as commodity" is the wrong mindset. I get anyonomys calls from people who just want a rate quote. I ask a few questions and let them know the rate. I never hear back. I don' t ask for them names or their intentions. Honestly, I don't win rate quotes. I have a borrower who is at a 5.75% ARM that doesn't adjust for 4 more years. He's always asking for rates - sends me the Bankrate averge ever few weeks - as his benchmark. First of all he has no equity in his house - second of all what good does it to do refinance a mortgage for 0.125% less of a rate... not in his case at least. So, anyways, bottom line is I don't see this as something that will increase my business - becuase these are not my customers. Maybe for some it will work wonders.

dannyutah · 1 year ago

NameYourLoan.com beat Zillow to this model by at least 6 mos. However, I'm certain that the Zillow name will gain greater consumer acceptance. It's a move in the right direction w/ a model that is ultimately designed to reduce cost & increase transparency for consumer by creating a forum where lenders openly compete in rates/fees (i.e. mortgage auction). The downside as noted by others is the greater "commoditization of our offerings" as well as consumer perception of bait & switch tactics among other downsides we have yet to imagine. Mass acceptance of this model will not serve to better educate the client but instead further the "lowest rate/fee" mentality. In the end, this may not be best for the client.

Graham · 1 year ago

So I am prepared to get slammed by some for this, but this model while a GREAT step in the right direction, doesn't change the CONSUMER mindset (which is at least half of the problem.) Consumers still don't know what they are talking about, and yet armed with the bankrate.coms of the world, think that they do. How does a borrower know that a 2 point buydown is a terrible idea, or that taking a free loan (ysp paid) is a better one. If you have ever seen the newspaper rate advertisements, it is as confusing as ever.

Mortgage shoppers often look at mortgages as commodities. I spent countless hours fielding calls and explaining my track record, education, references, etc. Guess What? Nobody cared. It was whomever could do it cheapest. Or it went to the guy who lied. Nothing that Zillow can do to make people SMARTER or more business savvy. They will continue to take the lowest cost, lowest rate. Sad but true.

The best part about this is that the phone will stop ringing. The worst part? NOw they are choosing between LOTS of quotes.

Alan · 1 year ago

I agree with what Graham said about the consumer mindset. I think this is a huge step in the wrong direction. While there are of course many sleazy lenders out there it is also true that people who can follow and catalog the results of every American Idol episode simply cannot be bothered to spend a little time getting to understand the details when they want to borrow $500k to buy a house. Yet every time there is a situation like this it is always the lenders who didn't put people in the right loans. Just once I'd like to see someone say that educated, adult, 21st century Americans can be treated like grown-ups and expected to invest some tiny portion of their American Idol time into learning a little about the biggest financial transaction most of them will make.

And this industry has an inferiority complex that feeds this. We can talk on here all we want about consultation and educating clients and all the rest. But we don't really believe it. If we did then some portion of this lead generation industry we support would be based on promoting something - anything - other than the pure, raw, lowest commodity pricing possible.

The one message that the millions of dollars of advertising that generate the leads sends is that mortgages are a complete commodity. That the reliability, service, support, honesty, etc. of the lender are irrelevant. Now, on top of that, a good lender who provides great service is supposed to quote a loan for a borrower whose name he doesn't even know, to whom he has not spoken, with whom he has had no chance to discuss options.

What if I want to propose putting 10% down instead of 15% as stated in the lead form and use the rest to pay off debt nd get him into a better program with good ratios? What if I want to discuss some credit items I think can be quickly addressed? Will the Zillow lead form tell me a first time buyer can provide 12 month's rent checks or a professional VOR? Or do I just assume they can and then have to change the program for the borrower later when I find out they cannot?

I could give 50 examples. This is just another situation where we are saying consultation in meaningless, all borrowers are totally defined by a few numbers, and lenders add nothing to the mix with their experience and expertise.

Can you imagine a web site forwarding a lawyer legal questions for answers with no name of the client? Or a doctor getting medical records for a diagnosis with no name or direct consultation?

You want an industry that provides service, education, and support to clients? Then stop treating it like a commodity and stop accepting and paying for advertising schemes that treat you like the only thing of value you have to offer is rock bottom pricing.

You want clients to stop being barraged by dozens of calls? Then enforce the industry's stated number of lead recipients. The phone rings 20 times because a lead that was supposed to be sold 3 or 4 times got sold 20 times.

And remember that if you want a client to be treated like a client and receive any kind of service at all then the phone HAS to ring at least once.

This kind of thing will only encourage participants to offer very low rates that are dubious at best. They can have whatever rules they want - the truth is that lenders will have a million legitimate reasons why the rate changes later - didn't have all the info because there was no consult, market changed, etc. But we all know that if you throw a truly honest price into a pure price competition where you didn't even have the chance to talk to a client you will lose to someone who lies. We all see it every day. And honest lenders fight it through honest consultations with clients.

RobW · 1 year ago

I'm willing to try it but have thus far been unable to. I signed up several weeks ago, paid my fee and received an email from Zillow that said I was approved to start subuitting quotes. I can log in but everytime I go to submit a quote it just takes me back to the sign up page and wants my credit card info again. I have sent several emails to Zillow but have gotten no response. I even got an email from someone at Zillow this weekend asking me why I haven't submitted any quotes yet. I replied to her and explained my issue but have not heard back from her either. I'm ready to call my credit card company and have them reverse the charges for the background check fee If I don't hear from someone at Zillow. Is anyone else having the same problem or does anyone know how to contact someone at Zillow?

Mike Clancy · 1 year ago

Same experience. I even placed an ad for $500.00 that never showed up. I called and ask to see it and they couldn't show it to me. Even after three attempts.
This will be a colossal dud. Prices change so frequently in the bond market, and what people THINK thier credit profile is, and what it really is, almost always differ. I predict tons of complaints about pricing, loan terms etc. The days of a mortgage as a commodit are over. It not "what is your best price" its now loan officers saying " lets see if you can get a mortgage."

hypotheek advies · 1 year ago

I did some reasearch and I passed zillow. Because of such blogs ;)