Outbidding the competition

by Justin da Rosa02 Dec 2015
As if the competition wasn’t hot enough, a new website now allows originators to bid on potential client business, but will they buy in?
RateGator is the newest digital lending company trying to disrupt the industry by connecting borrowers to mortgage loan officers, who then try to win business.
Will originators flock to take part?
“I wouldn’t participate in it because I don’t work with rate shoppers,” Mike Trenkle, an originator with MK Mortgage Group, told Mortgage Professional America. “When a client is willing to leave for 1/16th of a percent – which has happened – it’s just not worth putting in the time, especially with the new disclosure rules.”
The company was founded by Shawn Murrane and Brad Kriss, two Millenials who say they developed the company as a "platform where people can shop around for a mortgage without having their credit pulled multiple times," Murrane told the Albany Business Review.
How it works, is potential clients input information and rate preferences online. Once that is done, the client is placed in the RateGator database and potential loan officers can accept the client’s business or offer a counter proposal. Whoever provides the best offer wins the client’s business, according to the Business Review.
The service is free for clients, and it’s originators who foot the bill by purchasing credits to appear on the website. So far, over 200 clients have received offers from originators since its launch this past summer.
Still, many originators may not be too eager to join the service – especially those who pride themselves on the advice they give clients who are interested in more than just the lowest rate.
“If someone is interested mostly in rate, that’s just not the client I go after,” Trenkle said. “I do a lot of customer service work.”


  • by Yvette Villamana | 12/2/2015 9:44:49 AM

    I wouldn't waste two seconds of my time with buyers who shop for only the rate. Let them learn the hard way.

  • by M. Scott, IN | 12/8/2015 12:52:05 PM

    Sounds like another marketing referral program to me... Only originators are paying to BID on a "potential" lead.
    Everyone should know by now that 1. You have to not only review fico score and credit but the buyers entire situation since any 1 factor can change the mortgage; but 2. Originators from this type of lead source can and most likely WILL tell a buyer anything to get the deal. These type of marketing trends produce the most dissatisfied customers who often feel lied to and ripped off. These Originators often have no accountability as they usually are hiding behind their computer and phone since they typically never meet or get to know their clients or their true needs.
    This being such a huge purchase/ asset, maybe the millenials should rethink their mortgage method and the importance of finding a lifetime mortgage officer just as they do an attorney, doctor, or accountant. Way too many unknowns to take these risks!

  • by | 12/16/2015 10:53:45 AM

    It all boils down to closing ratios. If the quality is high, and the service leads to happy borrowers and lenders, it will be successful. Most lenders have eluded to having a marketing budget that equates to $1000 per funded mortgage and most borrowers prefer that their info not be sold multiple times while they field dozens of calls 'coming from the trees'. If Rate Gator's technology, algorithm, & customer service delivers, the proven model will be deemed disruptive and could potentially change status quo as we know it. Let's see if they release beta conversion numbers.

    Regardless of the outcome, kudos to these two entrepreneurs and anyone daring enough to create and innovate.

    * Stephen D. Berg, investor Rate Gator


Should CFPB have more supervision over credit agencies?