Originators unfazed by new competitor

by Justin da Rosa27 Nov 2015
Rocket Mortgage is the latest in online origination, and it endeavours to cut out loan officer middlemen. Do you have cause to worry?

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.”

COMMENTS

  • by | 11/27/2015 4:24:55 PM

    Dan Gilbert is a brilliant marketer. A master of making things appear other than what they really are. Until the tolerance caps of the GFE and now LE, Rock Financial aka Quicken Loans was a bait & switch on rate. With the new restrictions he now takes bait & switch to capturing consumers information only to tell them they will need to talk with a human being versus providing an approval that does not require consumer supplying supporting documentation. Here are the initial reviews: http://techcrunch.com/2015/11/24/this-could-be-the-mortgage-industrys-iphone-moment/

    Quicken Loans is trying to get out in front of Fannie Mae's creating the automated verifications through DU. Quicken wants to make consumers believe it was Quicken Loans that created this automated process. To understand Dan Gilbert's making things appear other than what they really are, you need to be able to read his superlatives. Example, Quicken Loans claims Highest in Customer Satisfaction in the U.S. in Primary Mortgage Originations. To a consumer that has not read the criteria for the JD Power syndicated research, it only studied 12 Originators when comparing Quicken Loans. NMLS has licensed 15,547 Originator Companies and 10,434 registered federal origination companies. Thus, Quicken Loans does not provide the facts that they were #1 of only 4.6% of the Primary Mortgage Originators. This is just one example of Dan Gilbert's making things appear other than what they really are.

    The consumers are easy targets for Dan Gilbert's marketing wizardry. The Rocket Mortgage is currently nothing more than yet another Dan Gilbert bait & switch marketing tool.

  • by Ashby | 11/30/2015 8:00:32 AM

    Quicken Loans is a joke - always has been. I love it when a potential client tells me they are shopping me against Quicken - that means I have already won!

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