by Brian Brady
Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL
Originator: I’m being paid $7, 000 from the lender because you chose a rate of 6%
Client: Got it. Cool, thanks for saving me money
Originator: If you chose a rate of 5.5%, YOU would have to pay me my $7,000
Happy Client: Understood. I’m down. Let’s roll with the 6% option.
Originator: You realize that if you negotiated better, I might have done it for less? It would have depended upon the demand for my services.
Confused Client: I’m sure I could have gone to Zillow and gotten a better price but I was impressed with your execution– I think it’ll save me a lot of money. Your blogging efforts convinced me that I need to be in relationship with you.
Originator: I just want you to affirm that I’m worth every single penny of my fee. I’m not a discount mortgage broker; I’M A PROFESSIONAL. You’ll also notice that I didn’t opt to put an anonymous rate search widget, like this or this, on my website.
Irritated Client: Understood. I trust you.
Originator: Transparency is great, isn’t it? You made the right choice.
Frustrated Client: You’re so smart. You’re so strong. You’re the best choice for me.
Originator: In the interest of transparency, should I drop my trousers to prove it?
Lost Client: Good bye.
My admiration for what Zillow has given the lending community is clear. I love that they’ve created a virtual Bourse for mortgages because I think like a trader. If my pipeline dries up, I’ll be in there, slogging it away. There’s a difference between playing by their rules, on THEIR platform, and adopting that “shopping technology” on my platform.
I’m virile but I don’t walk on the beach, in a Speedo, to prove it. Maybe that makes me deceitful, maybe it just makes me…
…smart.
JeffX says:
The value proposition in RateSpeed for a mortgage professional, such as yourself Brian, is that not only can a consumer view what rates (at par and/or with YSP) are available via your wholesale relationships, but so can you, in a fraction of the time…so you may go about trumpeting your ‘expertise’ and puking all over the rest of the internet 😉
In the time it takes you explain what you have in this post or in person, you or a consumer could have received their rates and understood your fee, value and business model.
Rates are a commodity, its about time this industry started treating them as such. By putting rates and pricing on the table, RAW, a mortgage professional is forced to compete on service, experience and execution…which you sir, should have no problem doing…
RateSpeed is, as advertised, a transparent, anonymous, automated mortgage pricing widget. Its also an efficient, honest, sticky lead gen tool…
April 13, 2008 — 12:51 pm
Bawldguy Talking says:
Two thoughts — Transparency has been twisted into something only double-talking PC practitioners could possibly understand.
If service providers would focus more on results, much of what they desire would take care of itself.
Oh…
And thanks for the visual. 🙂
April 13, 2008 — 1:25 pm
JeffX says:
Couldn’t agree more, Mr. Bawldguy…’Transparency’ has been twisted and manipulated into a self-serving term by those who utter the word in conjunction with how they do business.
Transparency is far more about actions than a spin doctors vernacular…
In my world you gotta walk it, not just talk it.
April 13, 2008 — 1:36 pm
Jeff Brown says:
AND you don’t have to walk it…in a Speedo. 🙂
April 13, 2008 — 1:48 pm
Geno Petro says:
Especially not in a transparent Speedo–and realy especially if you are indeed, as virile as you say, Mr Brady.
April 13, 2008 — 3:56 pm
Steven Leung says:
Could have done without the imagery, but for marketing, I think it’s hilarious that both of the anonymous widget sites gave you a trackback… 🙂
April 13, 2008 — 5:02 pm
JeffX says:
Steven…
This anonymous mortgage widget vendor has no issue debating the issues Brian brings up.
Purely in the sense of marketing, especially social marketing, it’s a win to have Brian link to me, the trackback allows me to expand the ‘conversation’…
I don’t expect, by any stretch, for everyone to endorse, approve or sing the praises of what I’m about to provide.
As a matter of fact, I revel in the exceptional opinion of others…it makes me better at what I do.
April 13, 2008 — 5:19 pm
JeffX says:
Also, for whatever it’s worth, I haven’t shown nor asked Brian to put my anonymous rate search widget on his site…yet 😉
April 13, 2008 — 5:21 pm
Steven Leung says:
JeffX –
Thanks, I guess I don’t have the dynamics down on the inside jokes yet.
April 13, 2008 — 5:34 pm
Brian Brady says:
“RateSpeed is, as advertised, a transparent, anonymous, automated mortgage pricing widget. Its also an efficient, honest, sticky lead gen tool”
The last four words are everything. Any thoughts on just farming leads to practitioners without the widget?
Do I get to set the pricing?
April 13, 2008 — 5:43 pm
JeffX says:
“Any thoughts on just farming leads to practitioners without the widget?”
Yes, best for a conversation though..
“Do I get to set the pricing?”
What you charge is your business, not mine 🙂
April 13, 2008 — 5:48 pm
Steven Leung says:
JeffX –
As an aside, I don’t disagree about expanding the conversation or gaining strength through opposing opinions, but I’ve always felt that automated trackbacks provide more opportunities for abuse than actual opportunities.
While it’s easier than amending a blog post for new commentary, it also forces the reader into a context switch. My preference would be a short description of the conversation.
April 13, 2008 — 5:49 pm
Brian Brady says:
“Thanks, I guess I don’t have the dynamics down on the inside jokes yet.”
They ain’t that great.
Welcome to BHB. As always, the talent just keeps getting better.
April 13, 2008 — 5:54 pm
Brian Brady says:
“What you charge is your business, not mine”
That allows for consistency of the brand. That’s better than Zillow, where I have to delete my quotes if not acted upon.
April 13, 2008 — 5:57 pm
JeffX says:
Clarification on ‘pricing’…you charge what you see fit in broker/banker compensation Brian…
Rate pricing, e.g. what rate at what price a given financial, doc-level and credit scenario yields, is non-manipulatable.
RateSpeed isn’t competition to Zillows Community, it may in fact prove to enable a mortgage professional to participate in the Community far beyond what’s currently practical…we’ll see.
April 13, 2008 — 7:40 pm
Robert D. Ashby says:
Rates have become commoditized, however service and expertise are not. The age old addage of getting what you pay for still exists today, even more so in the lowest rate and fees game that has been driven into the minds of every mortgage seeker.
Just look at what has happened to the airlines. I have watched (from the front seat :)) airlines service spiral out of control into disservice in the name of competition. The airline seat has become a commodity fueled by the internet, proven by the belief (and market driven fact) a passenger is no longer willing to spend an extra penny for additional service. Now, you can get a seat from New York to Los Angeles for less than the cost of the gas required to take that seat there, but don’t expect the any service, convenience items, or other “perks”.
The mortgage industry is quickly becoming the same “bare minimum” service. The problem is that in the mortgage industry, over time, it can actually cost the client a lot more than what the saved in the beginning.
April 14, 2008 — 7:13 am
JeffX says:
Agreed Robert, RateSpeed is designed to satisfy the consumers thirst for real rates in real time, allowing the mortgage professional more time to focus on providing service and fulfillment.
As stated, by putting exactly what rates a consumer qualifies for on the table, its up to the mortgage professional to set and justify their fees.
April 14, 2008 — 9:15 am
Dave Shafer says:
And like the airlines, customers expect great service at rock bottom prices. They will complain all the way to the end when their experience is low, just like their price!
April 14, 2008 — 9:19 am