Quicken Loan’s latest mortgage endeavour, the online application platform argues would-be borrowers need only moments to complete an app. It claims to be more than just an online application service; it also verifies information and provides a conditional approval similar to one provided by a loan officer.
That may be the theory, say veteran originators, but what about the practice? They point to very large number of clients who don’t supply all the proper information and the follow-up and due diligence required of all originators.
“If it sounds too good to be true, it usually is,” Rick Gardner, a senior loan officer with Starkey Mortgage, told Mortgage Professional America. “Computers don’t approve files, underwriters do, and they don’t talk to borrowers now, so why would they (if something further is required for a file)?”
There is also the potential for clients to unknowingly provide false information. Loan officers help clients ensure all the proper documents are in order, all income is properly verified, and the mortgage application is as accurate as possible.
Rocket Mortgage doesn’t provide that same service, although it claims to offer real-time pricing, after clients import and verify assets, income, and property information.
Still originators aren’t shaking in their boots quite yet.
“You can’t really replace the services provided by a loan officer; people who buy homes want the consultation and not just a good rate,” Tonya Koller of Summit Funding the Mazzo Group told Mortgage Professional America. “There is a lot of hand holding involved and a lot of guidance required, especially for first-time homebuyers.”
Rocket Mortgage is the latest in online origination, and it endeavours to cut out loan officer middlemen. Do you have cause to worry?