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This year’s Super Bowl was rated as the third most watched TV presentation. It would seem that a well-placed ad would get any company some really good exposure, as long as the content resonated with the public. Based on initial returns, it appears that Quicken Loan’s Rocket Mortgage Ad did just that (Rockets).
The ad for a new quick loan application and approval process sparked controversy all through the Twittersphere, including a tweet from the CFPB (talk about the increased use and importance of social media).
Although the CFPB tweet did not expressly mention Quicken or their Rocket Mortgage, it was issued soon after the commercial aired and it warned consumers to be wary of technology in a loan application process. It seems like a strange text from an entity pushing for a totally paperless loan closing.
The commercial tied increased homeownership with a road to more jobs and a better economy. Something the mortgage industry has touted for years. It seems like that would be a good thing and something the industry, and CFPB, would embrace.
Many who responded, fear the new product may take us back to the times of fast money, easy loan approvals, liar loans and reduced verification documentation. Quicken response felt that it isn’t so.
Quicken is offering the new generation an automated, streamlined process to apply for a mortgage online, with minimal hassles. They say they can approve a loan in as little as a few minutes.
However, that doesn’t mean they will forego the documentation needed to validate the information used, and provided by the consumer, for the approval. Quickens says these are fully documented loans based on the requirements of the secondary market, the ATR rules, and the agency’s automated underwriting systems.
Quicken’s ad says they are streamlining the application and initial approval. It doesn’t mention any short cuts to a final loan approval or a faster closing. It peaks the consumer’s interest in offering an alternative to the present cumbersome, time laden mortgage application process. It seems based on the feedback and initial consumer response that their ad did quite well. I guess it was worth the money (sure hope so at Super Bowl prices).
Maybe some of the feedback was just sour grapes fueled by fear from lenders who have to compete with Quicken. Quicken is just providing what consumers have clamored for; an easier loan application. It doesn’t necessarily mean they will approve and grant loans to unqualified borrowers (I sure hope not).
When this product was first announced I commented on the process and its potential effects on the mortgage industry (Quicken Loans). But, it seems it is getting some play.
How will the industry respond? Attack Quicken for creating a better mouse trap, or work to find ways to legitimately compete for business with better products and services of their own?
Consumers are looking for easy applications and quick approvals; CFPB and the secondary markets want quality loans to qualified borrowers. The lenders that can do both will come out on top.
Be that lender. Lend responsibly my friends.
BTW, if you missed it, Denver won…
(LoanLogics Twitter handle: @loanlogics)
