The New York Times announced that Google will soon enter the mortgage arena by offering rate quotes. Lending Tree, a company that also offers on-line quotes, is upset about this because Google will be using the same supposedly exclusive technology that Lending Tree uses.
Here at JVM we could not be more bemused by all this, as we frequently get loans that Lending Tree or other on-line services have bungled. We are no longer in a “Refi Market”; we are in a “Purchase Market”, and purchases are now far more complex than they ever were in the past. We have recently had major issues with: Regulation Z Disclosures, HVCC appraisers calling out issues and/or coming in below contract price; chain of title problems with REO properties; improper power of attorney problems – unauthorized signers for REO sales; lenders questioning owner occupancy; mixed use condo projects – few lenders will touch them; live/work loft condos – few lenders will touch them; HOAs in litigation; improper use gift of funds – lack of paper-trail; improper use of credit card cash advances for a down payment, and numerous other problems.
These issues often popped up late in the transaction and involved nuances that we had never before seen despite 50 years of combined experience. We not only have learned how to quickly deal with these issues, we now have team members whose sole job is to spot these issues at the FRONT END of the transaction. Our industry is no longer driven by the best sales people; it is driven by the most diligent and skilled people. Purchase Money Loans are difficult to close on time even with the most seasoned agents. We think it is extremely unlikely that Google and Lending Tree will be able to farm out their leads to loan agents with enough skill to spot and overcome the myriad issues surfacing in today’s lending environment.
We think Google’s entry into the mortgage industry will actually be a boon to our business. Thank you Google.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167