Mike Mueller, Social Media.ist

It's crap like this...

Rating: 1 / 5
Comment: I asked for conforming quote, got sent jumbo quote with huge fees. I even specifically noted the request in the 'notes' section due to the newly raised conforming loan limits. If a lender cannot start off paying attention to the customer's needs there's no reason to go further.
Reviewer: srg418

I've quoted less than 200 people on Zillow Mortgage.  All local who I could meet personally.

So, what did I do to deserve this ugly rating?

Those in the Biz know instantly.  I picked a day where Jumbo Mortgage Rates were low.   He asked for a $607,000 Conforming Jumbo, and I quoted him exactly that. 

He has issues with two things here.  

1. Jumbo Loans.  Sorry Mr. ZQ-FKRSMJG, you are wrong.  You think your $607,000 loan is now under the conforming limit ($417,000 or less)?  It isn't.  Surprised?  You are now what is called a Conforming Jumbo.  You are misinformed.
2. My HUGE Fees.  I quoted you my standard fees.  Check the APR.  Hardly HUGE fees.  Yes, I could put those into the rate and quoted you No Fees.  You didn't ask for a NO Fee Loan did you? 

Had Mr. ZQ-FKRSMJG emailed me or called me, I could easily explain the mechanics of the above.  He didn't.  Instead he gave me the lowest rating possible.

Client Education is part of what every good loan officer does.  I can live with the fact he doesn't get it.  I'm thick skinned.  I can handle rejection.  I'm honest and ethical.  I don't bait and switch.  I was a huge fan of the transparency of Zillow Mortgage Marketplace from the start. 

But I'll quit Zillow Mortgage

because there's simply NO WAY for me to respond directly to him.

I can't respond to him directly.  The best I can do is place a comment below his negative comment on my ratings page.  How many borrowers will take the time to view that? 

Please read :3 Reasons I'll keep trying Zillow Mortgage

You've heard about Liar Loans.  They've made the headlines in all the mainstream media. 

A Liar Loan is one where either the loan officer, the borrower, or both falsified their income and assets on the application. 

"I flip burgers at McD's  and pull in $10,000 a month"   <= Liar Loan!

Last night at exactly 9:00 PM  Zillow went live on a promising new program.

Zillow Mortgage Marketplace

It's a wonderful idea.  Here's how it works.

You the borrower, fill out a simple form.  You put in the pertinent loan factors that fit you.

That information is then posted anonymously to a page that I (a Registered Lender) can see.  I can then create a quote.  If my quote sounds good - you have the ability to contact me and take it to the next step.  All in all that's wonderful.

Here's a problem.  My quote is blindly based on the information you entered. 

Garbage in - Garbage out. 

The very first quote from last night was a prime example.

Starting at the top...

• Credit Score - Your score is crucial to a proper quote.  One digit off can mean the difference between a loan and a decline.  You better hope that when I pull your credit (that'll only happen after a loan application) that your score is the same as what you entered, or better.

• Loan to Value - This happens to be a refi.  Is the payoff correct?  Do you have a PrePay?  Where did that value come from?  Is that something you are hoping your home appraises for?  Is that what the home across the street sold for last summer?  Loan to Value is crucial.  Two things determine your actual loan to value - the Payoff Demand from your lender and the Appraised Value from the Appraiser.

• Debt to Income Ratio - Another critical calculation, just as critical as Loan to Value.  Two things determine DTI, Your actual income as computed by the underwriter and the actual monthly debts, also computed by the underwriter.  DTI is also forward looking.  When this refinance happens your new loan payment goes into the ratio - not your old loan payment.  Zillow can't figure this into the equation.  As an side, his Debt Ratio shows as ZERO because he did not enter his other debts (like his present mortgage) or assets.

• Purpose of the loan - You know that the loan for the home you live in is cheaper than the loan for an rental property right?  So does he.  He's saying this is for his Primary Residence on one portion and then he says he's going to rent this out on another.  Does this open the door for mortgage fraud?   I'd hate to find out.

• Debts and Assets:  Both of these are very important to an underwriter.  there are different programs and different rates depending on the Debt Ratio and the number of months in Reserves you have.  What kind of reserves are they?  Underwriters count various assets classes differently.    Liquid - non liquid.  Fully vested? 

This isn't a bash on Zillow.  I think the idea is great.  That's why I'm involved.  My only warning to all those who read this is that Zillow can't ask all the right questions.  What they have so far is awesome.  When the borrower gives us (the Mortgage Professional) incomplete or inaccurate data to work with we can only do our best. 

If I were to quote this loan (and I didn't), I'd want to make sure I had the right answers or at least play it somewhat safe.  That's just me.

Somebody is going to quote this guy based on his information and filling out the blanks with the best possible answers to create the best possible quote.  That's the quote this guy is going to answer because to him it looks the best.  Only when the loan officer starts digging deeper will the truth come out.    Garbage in - Garbage out.

Now Zillow does have a feedback rating system (think eBay) that'll offer some guidance down the road for borrowers on who to trust and who to not.   How many borrowers need to be burned before that starts showing up?

To Recap... 

Zillow:  Good for you!  Way to go!  Awesome!

Borrowers:  Be careful.  You've been warned!