{"id":2967,"date":"2008-04-15T10:00:06","date_gmt":"2008-04-15T17:00:06","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2967"},"modified":"2008-04-14T23:07:49","modified_gmt":"2008-04-15T06:07:49","slug":"a-bourse-is-a-bourse-and-zillow-mortgage-is-a-marketplace-and-never-the-twain-shall-meet","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2967\/a-bourse-is-a-bourse-and-zillow-mortgage-is-a-marketplace-and-never-the-twain-shall-meet\/","title":{"rendered":"A Bourse is a Bourse and Zillow Mortgage is a Marketplace and Never the Twain Shall Meet"},"content":{"rendered":"

Bourse is a funny word isn\u2019t it?\u00a0 What exactly does it mean and why do people keep referring to the Zillow Mortgage Marketplace as a Bourse?<\/p>\n

Bourse: \\\u02c8burs\\ Function: noun<\/em>
\nEtymology: Middle French, literally, purse, from Medieval Latin bursa<\/em> \u2014 more at purse<\/a>
\nDate: 1597
\n1:\u00a0exchange<\/a> 5a; specifically<\/em> :\u00a0a European stock exchange
\n2:\u00a0a sale of numismatic or philatelic items on tables (as at a convention)<\/p>\n

Wikipedia equates a bourse more generally to a stock exchange<\/font><\/a>.\u00a0 This seems to be the connotation meant when Zillow Mortgage Marketplace is referred to as a Bourse<\/a>: an open marketplace <\/a>where pricing is transparent.<\/p>\n

Hogwash\u2026 or more accurately: Pork Bellies.<\/p>\n

I was an options trader on the floor of the Chicago Board Options Exchange.\u00a0 That means I stood in a pit with other traders and made the market for various options on various stocks.\u00a0 (I reiterate this to make clear my bona fides<\/em>).\u00a0 When a broker (representing \u201cthe public\u201d) came into the pit and yelled out an option strike, my job was to have the best bid\/ask and be FIRST.\u00a0 If I accomplished both goals, I got to do the trade.\u00a0 If someone else was tighter or faster… he\/she got to do the trade.\u00a0 This is the most transparent, open market type of bourse that exists.\u00a0 How does Zillow Mortgage Marketplace compare to this?\u00a0 Not even close.<\/p>\n

There are more than a few discrepancies, but let me cut to the chase: In a transparent exchange, whether it be a pure \u201copen market\u201d, \u201copen out-cry\u201d system like in Chicago or the \u201clicense to steal\u201d that goes on at the New York Stock Exchange, one thing remains true: the underlying commodity is fungible<\/strong>.\u00a0 One share of IBM stock is interchangeable with another share of IBM stock.\u00a0 One call option is interchangeable with its mirror strike and expiration date call option for the same underlying equity.\u00a0 Its nature does not change based on who buys them or who sells them<\/em>.\u00a0 This is a bourse.<\/p>\n

MORTGAGE IS MORE FUNGUS THAN FUNGIBLE<\/strong>
\nNow you might say that all 30 year fixed rate loans are fungible, but they are not.\u00a0 A lot more information must be presented before claiming two such loans interchangeable.\u00a0 Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bourse is a funny word isn\u2019t it?\u00a0 What exactly does it mean and why do people keep referring to the Zillow Mortgage Marketplace as a Bourse? Bourse: \\\u02c8burs\\ Function: noun Etymology: Middle French, literally, purse, from Medieval Latin bursa \u2014 more at purse Date: 1597 1:\u00a0exchange 5a; specifically :\u00a0a European stock exchange 2:\u00a0a sale of […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[136,131,77],"class_list":{"0":"post-2967","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-zillowcom","7":"tag-bourse","8":"tag-transparency","9":"tag-zillow","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2904,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2904\/zillow-mortgage-bourse-how-to-acquire-long-term-clients\/","url_meta":{"origin":2967,"position":0},"title":"Zillow Mortgage Bourse: How To Acquire Long-Term Clients","author":"Brian Brady","date":"April 5, 2008","format":false,"excerpt":"I might have been hasty in my original assessment of the Zillow Mortgage Bourse. I sometimes suffer from TB; true believer disease. I'm one of the few guys in the mortgage business that actually wants to see the cost of loan acquisition, for the consumer, dramatically reduced. I have never\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2910,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2910\/the-odysseus-medal-competition-voting-for-the-peoples-choice-award-is-open-25\/","url_meta":{"origin":2967,"position":1},"title":"The Odysseus Medal competition — Voting for the People’s Choice Award is open","author":"Greg Swann","date":"April 6, 2008","format":false,"excerpt":"We have 14 entries on the short list this week, out of a long long list of 96 posts. I've already decided on the winner of the Odysseus Medal, so I'm not linking that way. This week's Short List is all Zillow Mortgage Marketplace posts, all of them written by\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3237,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3237\/zillow-mortgage-must-verify-consumers-to-become-a-marketplace\/","url_meta":{"origin":2967,"position":2},"title":"Zillow Mortgage Must Verify Consumers To Become A Marketplace","author":"Brian Brady","date":"June 16, 2008","format":false,"excerpt":"Mike Mueller is leaving the Zillow Mortgage Marketplace. A poor consumer performance review drove him to do just that. From the consumer review on Zillow Mortgage: Rating: 1 \/ 5 Comment: I asked for conforming quote, got sent jumbo quote with huge fees. I even specifically noted the request in\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2914,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2914\/the-odysseus-medal-it-makes-no-difference-what-has-happened-that-is-the-past-live-in-the-future-create-it\/","url_meta":{"origin":2967,"position":3},"title":"The Odysseus Medal: “It makes no difference what has happened. That is the past. Live in the future. Create it.”","author":"Greg Swann","date":"April 7, 2008","format":false,"excerpt":"I think I have a pretty good track record at picking contributors for BloodhoundBlog. The people who write here are a cut above, clearly, but I think what sets them apart is that they are all so interested in getting better. We're all constantly reading, learning, thinking, inventing, re-inventing, and\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2962,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2962\/fully-clothed-in-the-valley-of-transparency\/","url_meta":{"origin":2967,"position":4},"title":"Fully-Clothed In The Valley Of Transparency","author":"Brian Brady","date":"April 13, 2008","format":false,"excerpt":"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. 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