![]() ![]() The competitive pricing is also an advantage that is too often overlooked. Likewise they don’t offer savings accounts, investments, or other types of loans. Because Quicken Loans acts as a financial intermediary, they aren’t going to be able to offer holistic financial advice or planning. Namely offering more competitive pricing along with the ability to link mortgages with other banking products. Small banks also offer a number of benefits that Quicken Loans cannot. This lack of a personal connection is the reason why nonbank lenders have industry low retention rates. The best way to do this is creating a similar digital lending platform that engages customers through local expertise and personal experience. In addition to personalized service, going back to the drawing board and improving the application process is a simple way for smaller banks to get back on track. Smaller lenders have always counted on the personalized customer service that banking giants couldn’t offer, and this is where they can still compete against online-only lenders. Small banks can succeed by combining outstanding personal service with a streamlined online application process. While Quicken Loan’s rise has been astounding, it doesn’t mean small banks should be completely counted out. Basic information such as current assets, desired location for a new home, and credit history are major factors in the Rocket Mortgage process. Rocket Mortgage walks users through a simple, eight-step online wizard. They’ve taken some of that extra revenue and transferred it into becoming experts at gathering, analyzing, and applying vast quantities of data they collect from their clients to assess credit risk, which is how they keep default rates low. By not owning a single brick and mortar location and operating fully online, the company has an extremely lean operating basis. The digital platform has allowed Quicken Loans to not only dominate user experience, but also returns. Nonetheless new regulations were drafted, which has yet to slow down the new lending leader. Quicken Loans was quick to point out that they never made a subprime loan even while catering to those that had previously been turned down by banks. Less than a decade after the housing industry experienced one of the worst crises in its history, the ability to get a mortgage that easily terrified regulators. However, Rocket Mortgage has been met with sharp criticism on the regulation side. Borrowers have been extremely responsive to this approach: Rocket Mortgage accounted for 98 percent of Quicken Loans’ new mortgage origination in 2017. The idea that as a consumer you can turn a 30-day affair full of paperwork, research, and stress into a ten-minute application on a smartphone is about as user centric as a lender can get. That strategy has translated into the release of Rocket Mortgage, which is marketed almost entirely on efficiency. Therefore they went about creating a digital platform that focused on user experience not small interest rate differences. What Quicken Loans quickly realized is while there is not much of a difference between mortgages there are significant differences in the experience of obtaining one. With the recent string of banking scandals over questionable sales practices and hidden fees, consumers had begun looking for alternatives and Quicken became their solution. With over 30,000 lending agencies nationwide, just how did this company started in 1985 with only 5,000 dollars in capital overtake international banking powerhouses? The answer: focusing on customer needs. Digital lender Quicken Loans made more than 25 billion worth of mortgages in the fourth quarter of 2017 alone, surpassing banking giant Wells Fargo. For the first time, a nonbank lender was top of the mortgage origination market. The fourth quarter of 2017 marked the end of an era for mortgage lending. How Online Lender Quicken Loans Changed the Game for Mortgage Companiesīy: Justin Deffenbacher / The rise of Quicken Loans ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |