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How much of a threat are online lenders?

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Mortgage Professional America | 23 Apr 2015, 01:50 PM Agree 0
Brands like Quicken are splashed across all the media as they use their huge advertising budgets – but are they really a threat to originators?
  • Cheryl M | | 23 Apr 2015, 03:20 PM Agree 0
    I don't feel sorry for the broker, just the customer. The online origination does not always cut the job and those 40 to 50yr consumers are telling friends and family about their awful online experiences. God knows I've heard a lot of them. Then someone tells them about the "broker" or "mortgage banker" next door....He/She is your neighbor...why did you go online when their right next door? "Hands on" or "Come on in" or "I'll stop by" in many cases today, with all the talk of "fraud" this and "fraud" that, consumer today are becoming more and more hesitant to let their fingers do the walking when it comes to their private finances, money, etc...
  • Brad | | 24 Apr 2015, 09:21 AM Agree 0
    Totally agreed Cheryl. This article was obviously written by people making their paychecks from online lending.
    Online lending:
    - 50% of applications will go through without a glitch
    - 25% of applications will go through with major issues on the file, the borrowers pulling their hair out trying to make heads/tails out of the issues with shotty customer service along the way.
    - the other 25% will be straight declines or not fund altogether because there is no mortgage officer to pull the mortgage through.

    It is almost as if this article was written by some jackass manager who doesn't/hasn't originated mortgages in the modern era or doesn't care about issuing declines. No accountability, no customer/borrower starring them in the face when the mortgage doesn't fund.

    A disservice to the public and a disservice to the industry.

  • Griff | | 24 Apr 2015, 11:42 AM Agree 0
    I'll be watching the online originating progress. I am doing a good amount of business from those who found me online, but they and I are mostly local.

    I don't hear good things from the real online originations. One buyer took over six months to close. I just had a buyer contact me because he was doing a rural housing mortgage from someone in Texas, we're in Kentucky. He was not trusting the originator because they wanted money from him and the seller was paying all his costs. The originator was not able to explain why they wanted money.

    I feel the only mortgages that make sense for the consumer online are the ones with great credit, big down payments and low dti's. If you don't have this scenario, then who is dogging the consumer to get all the documents? Whereas a lot of folks have the ability to scan and email today many are not good at it. I would not think there would be enough margin to pay someone to do all the paper shoving I do on the majority of the files if they are undercutting rates.
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