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Mortgage lender aims to get rid of loan officers

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Mortgage Professional America | 12 Jan 2015, 08:48 AM Agree 0
In an effort to squeeze out origination costs, this lender said it wants to keep the entire mortgage lending process online. Could this be the future of mortgage lending?
  • MortgageGuyInPA | | 12 Jan 2015, 09:42 AM Agree 0
    Good luck with having a complex algorithm fit a square peg into a round hole. It looks easy from 40,000 feet. When you are down on the ground with the rest of us you will find out how difficult it really is.
  • MortgageGuyKY | | 12 Jan 2015, 09:49 AM Agree 0
    Obviously this guy views math as a foreign language. Assuming a $300,000 mortgage, 100 basis points or $3000 over 30 years at 3.5% totals $4849.68 which is much less than "10 - 20 thousands of dollars". This is on the high end of his estimate. WOW.
  • Anonymous | | 12 Jan 2015, 10:02 AM Agree 0
    LOL, good luck with that! :-) This deserves the Darwin Award of business models. Licensed and skilled professionals nationwide are lining up, ready to help the myriad of disappointed and frustrated borrowers who will turn around and leave because they have NOBODY to talk to about their unique situations or needs. There is no relationship whatsoever.

    Pull up a comfy chair, pop some popcorn, and let's watch this comedy play out. This made my day. Still laughing...
  • ClaireYz | | 12 Jan 2015, 10:06 AM Agree 0
    This is making my day...HA HAHAHAHA
  • eg | | 12 Jan 2015, 10:12 AM Agree 0
    dream on baby! every mortgage is different and has it challenges! Bad enough we have mortgage officers out there who don't know how to properly service customers - you want to have none. Your closing rate will go down the drain in 2 minutes!
  • jeremy | | 12 Jan 2015, 10:18 AM Agree 0
    The funny thing is that this guy thinks this is an original idea. Never hear of mortgagebot?
  • Bob Schwab | | 12 Jan 2015, 10:27 AM Agree 0
    Best of Luck! You will need it. The mortgage world is very difficult if not impossible to navigate without a mortgage advisor.
  • KimDongFuk | | 12 Jan 2015, 10:33 AM Agree 0
    That's got bad news written all over it.
  • mymyselfandI | | 12 Jan 2015, 10:33 AM Agree 0
    I am already seeing the easy refinance mortgages going online for their mortgage because they can get a tiny bit off of their interest. That rate is lower because the lender is not paying the LO. That leaves the tougher mortgages for me to do. Which in turn take more time and that in turn leads to reduced income. Go ahead and laugh at their business model. But the trend is one for concern. All the automation we see is geared to reducing the need for so many mortgage officers. We won't all be replaced by automation, but many of us LO's will.
  • a mortgage broker with 35 years experience | | 12 Jan 2015, 10:38 AM Agree 0
    another idiot that thinks he has the answer to the world of finance

    as professionals, we should make known or opinions on this type of startup that is nothing but a wolf in sheep clothing
  • qualityquest | | 12 Jan 2015, 10:39 AM Agree 0
    "The lender also claimed it can close a mortgage in a third of the time... However, Van den Brand said he wants to cut the time from mortgage application to closing from two months to three weeks to hours..."
    If it's taking 2 months now to close a basic refi, they are miles and miles from providing adequate service. And they're going to cut that two months to "hours"? Good luck, chumps.
  • integrity funding | | 12 Jan 2015, 10:42 AM Agree 0
    Until they get to the part about having to collect docs, and resigned conditions, disclosures, etc..., then we "unnecessary" mortgage officers won't be so much of a bother to pay a pittance of what the company makes.

    Utterly laughable.

    Good luck with that. We'll see just how many customer eject from your online "service" and talk to a real human.
  • The Mortgage Guru | | 12 Jan 2015, 10:42 AM Agree 0
    When someone mentions they want to cut the mortgage process from 30 days to hours knowing that regulatory constraints prohibit this from happening, you've got to wonder.
  • Anne E James | | 12 Jan 2015, 10:53 AM Agree 0
    I clicked on this to 'read more' and can't stop wondering if this person set up Amazon's online ordering model. That works. You got the money to pay and Amazon nor the vendor cares about your credit, 2016 expenses, and your questions can usually be answered online. With no on to talk to, your chances of getting turned down automatically are doubled, your time to close compared to a mortgage broker with a processor and hands on with escrow, title an underwriting can be two weeks with the right lender.
    Cutting out the mortgage officer at bank branch level and retail might be possible (but then where does the business come from?) as there as processors capable of doing all, start to finish, except taking the heat when things are going right or wrong and often meeting with a client if their distrust of our industry requires them to meet a person, look up their record and referrals.
    I don't know though....maybe I can get Tony Robbins to invent this model auto-check my 'All Weather Portfolio' and make sure I get an auto-return of 10% yearly over the next decade?
  • Rich the Real Estate Guy | | 12 Jan 2015, 01:08 PM Agree 0
    oh look its a variation on the old Provident Model - for those borrowers with 820 credit, 2.3% DTI and 120 months of reserves, this will work well. Smells like Amerisave and Quicken without the flowery smell.

    I think it is a novel idea but thanks to MDA and Dodd Frank, borrowers are still going to be drug through a knot hole backwards with nobody to talk to about it or understand why.

    At least currently, their website says they are only abusing customers in California.
  • Rich the Real Estate Guy | | 12 Jan 2015, 01:12 PM Agree 0
    Tony Robbins Can Do that? lol
  • Jeremy Woodson | | 12 Jan 2015, 04:27 PM Agree 0
    When he says saving 10-20K he means by knocking off 100 BPS on the back end of the mortgage he therefore can offer 3/8 better on the rate and thus depending on the mortgage size he would save he consumer that amount of money. Not saying it will work, I have seen many lenders that tried this. However MortgageBot operates on this automation premise and they have over 1400 banks using their automation system.
  • Crystal A | | 12 Jan 2015, 07:11 PM Agree 0
    Reminds me of ROBOSIGNING a law suit waiting to happen!
  • mtggrl | | 13 Jan 2015, 09:20 AM Agree 0
    Where does the liability lay with a wronged customer..the computer? How can this even be legal with all the mandated licensing a mortgage officer must adhere to. Once a computer can get licensed, that's when it can roll out..
  • JR | | 13 Jan 2015, 10:07 AM Agree 0
    Who is going to sign the 1003? Not sure any agency would want to touch that.
  • | | 13 Jan 2015, 07:11 PM Agree 0
    Obviously this guy has never tried to process a mortgage application!
  • Only Joe | | 14 Jan 2015, 01:34 PM Agree 0
    Who's NMLS license is going on the 1003 and being reported to the NMLS? If it all going under the CEO's license number, that could be considered a lot of Risk for the company.

    Anyway, they need a licensed individual to make this happen. So those people my just be salaried mortgage officers but being call something different.
  • MC950 | | 16 Jan 2015, 12:18 PM Agree 0
    I wonder how this will play out...
  • maryleemortgage | | 19 Jan 2015, 12:02 PM Agree 0
    I wonder what the robots NMLS number is??? Your mortgage is the 2nd most important aspect of your life, after children, if you have them. No one wants a robot to handle their mortgage. Odds are whoever wrote this has NEVER been a mortgage mortgage officer? We work 24/7 with the technology today. Even the younger generation is getting that online lending is not the way they want their main financial investment to be handled. These articles are the reason I am writing a book in my spare time so we can educate the younger generation about customer service with a smile and many time a hug when their closing is done locally and you get to meet them face to face. At the end of the day fantastic mortgage advisors go to sleep knowing that they put their borrower in the best mortgage for their future of what we can predict. There are always factors we can't predict. If you have the best rates and fees then all we sell is service! Your mortgage is not a pair of shoes that you can return if you don't like it!
  • TheFuture | | 20 Jan 2015, 02:23 PM Agree 0
    Great how all the mortgage advisers come on here "laughing" about modeling software replacing them. Not saying this guy's business is the right model, but its coming. "First they ignore you, then they laugh at you, then they fight you, then you win." Gandhi.
  • Mortgagefolksheretostay | | 26 Jan 2015, 12:21 PM Agree 0
    Nice laugh for a Monday morning
  • griff | | 05 Feb 2015, 12:16 PM Agree 0
    Online mortgages can work for the perfect borrower - high credit score, low dti, no appraisal needed. I shudder to think how it would turn out if they got one of the lousy appraisals I get to see all the time. Maybe the computer can discuss that with the borrower.

    Even my most educated borrowers give me bank statements with less than the requested history, with undocumented deposits, or with up to 6 accounts they constantly move money around in. Who is going to work thru this, perhaps a processor who gets the file. A lot of folks are going to walk away when they are being asked for data from someone they have no relationship with.

    When we have a plain vanilla single product online will work fine, until then ....
  • JDOGGYDOG | | 01 Apr 2015, 02:37 PM Agree 0
    And what will happen when a borrower wants to sue a robot?
  • Jesse | | 01 Apr 2015, 10:19 PM Agree 0
    I'm a licensed LO and I see this as a threat, but I don't pick fights with natural forces. This idea makes sense and they can be like the "Provident" of retail refinances to what they were to brokers. Keep costs low, offer awesome rates and forget about the service. Many people will not care about 2 months to refi and not talking to someone. People like not talking to people, look at texting. Understand that LO's will be gone in 50 years...maybe less. Act accordingly, make yourself valuable, leverage what you have, save your money and diversify your investments, both time-wise and with capital. Godspeed.
  • David Inga | | 11 May 2015, 03:38 PM Agree 0
    I believe it would be best for their to be a marriage between the mortgage mortgage officer and new technology rather than completely replacing the mortgage officer with technology.
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