LEADCRITICNew Auction Based Lead-gen Site
Filed Under: featured, consumer experience, Lead Generation
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In the past we have discussed going the consumer more control over the loan shopping process. George Favvas took a positive step forward with the creation of SmartHippo which is gives borrowers the chance to post the rates they received, rate the lender and also shop for the lowest mortgage rates. Now another website looks to give more control to the consumer by allowing them to compare apples to apples. Nameyourloan.com is an auction based platform that allows consumers to view multiple offers before they ever have to speak to a lender.
“Through advanced technology, we are starting to make haggling and deceptive lending tactics a thing of the past,” explains Salahi. “At the same time, we are transforming a generally stressful and complicated process into a very pleasant and easy experience for borrowers. Our multiple bid auction format, coupled with constant consumer feedback, will make it easy for us to weed out dishonest lenders–and hopefully put them out of business!”
The process is fairly simple, a consumer fills out their information similar to a typical mortgage inquiry. Once the form is complete the auction begins. The auction last 24 hours from that point. After the form is completed a notification is sent to 3-4 lenders who’s filters are aligned with the borrowers information. These lenders then price out an offer according to the borrowers info and an email is sent to the borrower notifying them that offers are waiting for them.
The offers are fairly thorough and gives the consumer all the corresponding rate information and fees. Once the consumer views the rates they have the choice to accept the rates, restart the auction with different parameters or cancel the auction altogether.
Overall I liked the the UI on the website and the ability to view the rates before ever speaking to a lender. I am not sure that viewing the rates first is going to reduce the likelihood of fraud, but it is a painless process and very convenient. We’ll have to wait an see if consumers find it useful, but none the less it is another evolution of the lead industry and another step closer to giving the consumer full control of the loan process.
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PEK | Dec 16, 2007 | Reply
The 2nd link is wrong: it is www.nameyourloan.com.
However, my gut reaction is that this process is too complicated. In my experience as a lender, borrowers typically dislike the mortgage loan shopping process, and also want immediate response to get the task off their list. Engaging in an auction process seems like protracted agony. Who knows, I could be wrong!
Some_Insider | Dec 17, 2007 | Reply
I also worry that the “auction,” process could actually make the bait-and-switch tactics worse, rather than better. Everyone knows that rate, or price, is not the ONLY factor by which consumers make decisions. In fact it is rarely even the most important decion-making factor. So, I worry about value propositions that are solely rate driven becasue I wonder if that is REALLY in the consumer’s best intrest.
owen raun | Dec 17, 2007 | Reply
also, why does our industry think that the #1 problem of consumers shopping for mortgage on the internet (or anywhere for that matter) is “bait and switch”? I have listened to tons of lenders complain about other lenders offering fake offers. But of the complaints received at LT - bait and switch is not near the top. The #1 complaint has always been “no one contacted me”. (feel free to tell me this is no longer the case at LT). “sticking it to the bad guys” assumes there are bad guys getting away with something of value - I just dont think this is the big problem in our industry - maybe if we all would quite telling the consumer that the other guy is a liar.. and trust that the consumer has a legitimate reason when they tell us they have opted to use someone else.. but just in case - I just registered www.imnotaliarlendertheyare.com
Lead Critic | Dec 17, 2007 | Reply
PEK,
Thanks, made the change. That is what happens when I write past my bed time.:)
PEK | Dec 17, 2007 | Reply
Owen, I’m with you 100%. Bait and Switch is perceived as the #1 problem by lenders - NOT consumers. Consumers I’d say continue to find the #1 problem to be hassles, time waste, dweeb mortgage guys, and other energy suck-holes.
Lead Critic | Dec 18, 2007 | Reply
PEK and Owen,
I agree to an extent. Despite what the LT complaints say and what you think people want to perceive as the #1 problem, bait and switch is a problem, no matter how high it ranks and should be minimized as much as possible. To what extent the problem is is unknown.
PEK,
I agree that the process is long and arduous, but it is also a large transaction. As much as I would love it to be a simple click to complete, I am not sure that is appropriate. We’ll see though times are changing and processes are being streamlined more and more.
Simply removing the LO could solve your 3 issues, but then of course it maybe a little too complicated. I guess it is all in the UI.
Kevin Blasi | Dec 18, 2007 | Reply
This is downright scary. The way this service is setup undermines the efforts of honest loan officers everywhere. We all know that we can not make a true and honest offer until after speaking to the client and uncovering all of their story, let alone quoting anybody before seeing a credit report!
This can be dangerous to our credibility and further our negative perception by consumers.
Lead Critic | Dec 18, 2007 | Reply
Kevin,
I think you hit on the head. I like this idea, but clearly needs to be taken a few steps forward to be complete.
Jim | Dec 21, 2007 | Reply
Has anyone seriously taken a good look at what these two outfits provide?
Both are nothing more than run of the mill lead providers trying to come across as the answer on how to get a good deal and not be taken for a ride. Ha-ha.
In truth, the poor unsuspecting borrower is just going to get hit over the head with the same crappy offers from the same crappy loan peddlers just presented in a different light.
Same ole story of trying to make perfume when you operate a pig farm. Just doesn’t happen.