Seattle-based Zillow.com, best known for its instant home value “Zestimates,” launched a new service on Apr. 3 aimed at changing the way Americans shop for mortgages.
Borrowers can use Zillow’s new “Mortgage Marketplace” to get custom loan quotes from lenders without having to give their names, addresses, phone numbers, or Social Security numbers, or field unwanted telephone calls from brokers competing for their business. Borrowers reveal their identities only after contacting the lender of their choice.
For mortgage companies, the anonymous leads come free of charge; they can make a bid based on information provided by the borrower, such as salary, assets, credit score, and the type of loan. Lenders can browse borrower requests and see competing quotes from other brokers before making a bid.
“This is a huge step forward in terms of putting borrowers in control and giving them access to information,” said Spencer Rascoff, Zillow’s chief financial officer and vice-president for marketing.
Fees Rolling In
The company is entering a field of established mortgage sites such as LendingTree.com and Experian Group’s Lowermybills.com, which charge mortgage companies for borrower information. Zillow, which has an advertising model, says it won’t charge for leads.
A few hundred lenders across the country have already signed up to participate in the new service and have paid a one-time $25 fee, which covers the cost of a background check, including employment and broker license verification.
Borrowers will have more than fees and loan rates to consider; the site gives a 1-to-5 rating to each lender based on borrower feedback. Zillow’s standardized quote form allows customers to compare rates, fees, and lenders’ ratings. Zillow calculates a monthly payment for each quote by estimating taxes and insurance for the house.
Brian Brady, managing director at San Diego’s World Wide Credit, a national lender and broker, said he signed up for the Zillow mortgage…