Zillow Mortgage: I Wasn’t First, So I Want to Be Last
By: Brian Brady,
MillionaireRealEstateLender.com,
Post Archive,
RSS FeedPosted: Thursday, April 3rd, 2008, 1:13 am MST
Category: Disintermediation, Lending
Zillow Mortgage announced its Mortgage Marketplace today with the ceremony of the opening bell on the NYSE. I applaud them for bringing transparency and reputation management to an industry that needs both.
Originators, who have been around the block, understand my title; I’ll wait and bring the best offer, last.
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9 Comments so far
There is a saying in real estate:
In life you want to be someone’s first love, second spouse and third real estate agent.
We could certainly add: “last financier” to the adage.
I fail to see Zillow’s new mortgage play as anything but dropping a rock on top of the anthill and watching all the ants scurry.
Given the obvious and multiple ways for mortgage brokers to lose while playing Zillow’s game, how is this a long term win?
Even the world’s best service provider will find themselves the targets of irritated borrowers, and through nothing they’ve done, except trying to do a good job.
I judge this a brilliant move by Zillow. If I was a mortgage broker? No way would I consider playing this game.
Surely I’m missing something here, and I expect you to explain it to me. Seriously though, the almost guaranteed potential for damage vs new business just doesn’t seem worth the time — or the risk.
Brian
Its good that someone is bringing the concept to mortgage. HomeGain brought the concept to real estate agents back in 1999….
http://blog.homegain.com/homegain-cries-flattery-zillow
I don’t get it? Sure fee’s are disclosed up front. But rates change often. So you can still quote a rate and then have to give a different rate once an application is in. And you allow them to turn you into a commodity in the process.
I have done loans over the phone and through internet leads, but that flies in the face of what I think consumers should do, which is to take the time to talk to a morgage planner and produce a plan of action. Maybe even discuss how much they are paying for the mortgage up front. Business is about doing things with people, not systems. There is no substitute for building relationships with folks based on ethical treatment. As long as people are trying to “game” the system, they will be the ones that get burned. Its a fact of life.
Until we have a mortgage system that allows for true transparency, then trying to shop rates is impossible.
That is what we should be telling people.
Stop Louis- that’s so silly. It’s an open marketplace, much like the NYSE (which has a 193 year history)
I’m sure, Zillow is revolutionizing yet another aspect of our lives. YAWN.
I signed up and bid on one loan for fun – I’ll report back. I can already see a lot of problems. There are too many variables that a borrower can be just a little wrong with (credit score, appraised value, whether it is cash out or no cash out, etc.). I like the concept as a lender because you get rated for performace, but I can already see a lot of frustration for both a borrower who is shopping for rates, and a lender who is trying to give an acurate bid with what I am guessing will be a lot of inaccurate information provided by the borrower.
Other possible names for Zillow Mortgage.
Zillow’s Liars List
Bait & Zillow
[...] and cookie aspects here and here. Brian Brady takes a “the last shall be first” attitude here and presents Zillow Mortgage as online dating here (this is the Great and Powerful Oz so, trust me, [...]