Quicken Loans, the nation’s third largest mortgage lender, has leapfrogged the competition. While many lenders are still working to offer consumers an online application, Quicken’s new Rocket Mortgage offers not just the online app but online loan options, selection and loan approval (Rocket Mortgage). Everything, from soup to nuts, on the front end. No mention of an eClosing…yet.
This is a game changer. For years, lenders have been discussing the processes needed to streamline the loan application and approval process. It just takes too darn long to let a consumer know if they are approved for their loans. Let alone the avalanche of paperwork requested from them to get to that point. Quicken’s Rocket Mortgage says, “No more!”
Technology is the key. Quicken has developed the systems to tap into data which already exists electronically about consumers and the properties they wish to finance. Why gather data either manually or electronically and then go about manually processing and verifying it?
Most data about consumers exist somewhere in a computer; their credit information, employment and income records, and their assets. All reside in some database. The secret was to tap into these databases directly without the need for manual intervention. Seems Quicken has found the way.
Sure, once all this electronic information is gathered it must be carefully reviewed. Then, the loan must be underwritten for a full approval as usual. But, the online, upfront process, with a preliminary approval, will cut the overall approval time drastically and eliminate much of the paperwork now required. This paperwork has always been a major bone of contention with consumers.
Now, we watch and see where this goes. How will it be accepted by the consumer? How will it affect competition? What do traditional lenders have to offer to compete? What’s the next step?
What’s your take?
- Game Changer; tough to compete
- Just another option for consumers
- Will not replace traditional lending
Quicken Loans’ Rocket Mortgage will sure quicken the pace of mortgage lending.