Early Consumer Response to Zillow’s Mortgage Marketplace

By
Services for Real Estate Pros with VIO Media Group/ HItxt.com

In April of this year Zillow launched their mortgage service called “Zillow Mortgage Marketplace.” The marketplace enables consumers to create a request for a purchase mortgage, home equity loan, or refinance loan. However, unlike other home loan aggregators, Zillow enables the potential borrower to remain completely anonymous throughout the process. For instance, consumers are not required to enter their social security #, address, or even their name at any point during the online application experience. Borrowers ultimately receive loan offers from multiple lenders sent directly to an anonymous Zillow account. Clearly Zillow believes that by keeping the application process anonymous users will be more likely to fill out an application to gauge potential home loan financing options without fear of being inundated with marketing solicitation from lenders.

You may be wondering what type of traction the “Mortgage Marketplace” is gaining with consumers. As the chart below illustrates, traffic to this section of Zillow’s site has steadily grown from the time of product launch.

Zillow Mortgage Marketplace

It is clear that this offering is an increasingly important piece of Zillow’s overall portfolio, as ~25% of total site visitors in June went to the Mortgage Marketplace. It certainly will be interesting to keep an eye on the rate of consumer adoption for the Mortgage Marketplace in the months ahead.

 

Best,

Michael Ouellette

Hitxt.com - SMS Real Estate Leads

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Rainmaker
808,886
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Michael;

Great information, thank you for sharing.

Anthony

Aug 04, 2008 01:11 PM #1
Rainer
14,614
AMY SHRADER
Hurst Real Estate & Auction - Morristown, TN

Michael---I am a lender that signed up to be a part of the Zillow Mortgage Marketplace.  From the lender perspective, it's not that great.  I see other lenders posting rate/closing cost quotes and there is NO WAY that can honor them.  I understand low/no closing cost options BUT typically you are going to get a higher rate so that the lender can use the SRP or YSP to cover the closing costs for you.  I think that in a few months, the site will be getting a bad rap because of loan officers quoting things they can't possibly do in order to get the consumer to contact them directly.  Just my .02.

Aug 04, 2008 01:29 PM #2
Rainer
9,073
Michael Ouellette
VIO Media Group/ HItxt.com - North Attleboro, MA
hitxt.com

Amy -  This is an excellent perspective to incorporate into my post.  My post was simply based on consumer response.  I completely that the practices of loan officers pretty much saying anything to get a call back will quickly erode any credibility that the service may have.  Thanks for your comments!!

Aug 04, 2008 01:34 PM #3
Rainer
1,938
Kevin Gouchenouer
Century 21 Realty Concepts - Effingham, IL

Michael,

Great info.  I see this becoming a problem as well when lenders promise things they can't deliver to get the business.  Isn't that what some online lenders have done already which helped with our current market situation? 

Aug 04, 2008 01:48 PM #4
Rainmaker
116,484
Tony Sena
Shelter Realty, Inc - Henderson, NV
Broker/Property Manager

So now Zillow is trying to get into the mortgage side of things.  This will be something to follow to see if they start selling leads to loan officers.

Aug 04, 2008 01:53 PM #5
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Rainer
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Michael Ouellette

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