Press Button, Get Mortgage
Let’s process Rocket Mortgages’ (A Quicken / Intuit company) “Press Button, Get Mortgage” one-third of a billion-dollar advertising campaign. We’re concerned about the message it’s spreading and impact on consumers.
Is it really that easy?
The program does eliminate a lot of customer communication which may imply it’s easier (we, however, think conversation is where most potential problems are solved). The technology behind that program is Fannie Mae’s “One Day Certainty” and it’s available through most lenders and brokers (including GoldCoast). It has a substantial likelihood of non-fulfillment though.
Here’s what the advertisements do not show:
- Instead of uploading your bank statements for the application you are REQUIRED to share your username and password (security questions and answers?) for your bank and investment account logins.
- If the applicant’s employer doesn’t report wages and salary information to Equifax’s The Work Number, then you cannot participate. Hmmm, Where have I seen that company name before?
- Side hustle? Income appearing on tax schedules B, C, E? K1’s? 1099’s? The program may not work. We’ll stop here, because you get the point. It’s complicated to the point that most real people in a functioning world can’t utilize it.
So what would “Press Button, Get Mortgage” help with?
- A lower rate? No. It’s actually likely to cost you MORE money as options such as Community Reinvestment Act, USDA, LPMI, strategic rate lock periods, rate renegotiation and dozens of other potential cost savings tools were never brought to your attention in discussion.
- How about a smoother process? If frustration begins with a lack of control, or extreme likelihood of a change of terms, surprise, or disappointment then Buckle Up.
- Well less communication must help? Nope – it’s an automated platform – sorry there’s no field or drop down for the question you’d really like to ask.
- You want to move your closing date forward, or back a day? Rent a time machine. Let us know if you are able to get an onshore human, or even better, the same person twice ever.
- Why are these Apps or programs good for true professional service providers? Our Safe Passage Assurance, service, guidance and fee structure shines brightly in comparison. It’s really two different business models in the same industry. Apps create an allure of ease, but this isn’t a Starbucks order.
So where is the benefit to a “Press Button, Get Mortgage” type of campaign? We already know the consumer doesn’t benefit. The true benefit recipient is Rocket Mortgage (less Human Resources, more automation, and the they effectively transfer some of their lending risk to loan insurer).
With any mortgage program there are pro’s and con’s. This one needs a Heads Up, for sure.