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Approximately a month ago I was notified that Google would be reducing their Advisor product to only cover a handful of states. I kept the rumors at bay until I could find more detailed information about the changes. These rumors have now come to fruition.
Over a year ago Google released it’s first version of their comparison ads platform in the UK and more specifically in the mortgage vertical. The directory listings product was then brought over to the US and marked the first time Google entered the lead generation vertical. Since it’s inception there have been a few companies to replicate the product, LeadPoint being the most successful at doing so. Over the last year I have heard nothing but good things about these types of leads and the level of quality that is being produced. The only negative that I have heard, is that there simply is not enough supply to meet the high demand.
Last week, due to increased scrutiny from state regulators over Googles lack of proper licensing, they have reduced their coverage to approximately 5 states. It’s not clear to me on how long it will take Google to get licensed in these states and I am sure it will rely mostly on their internal motivation to actually start the process and ultimately how long the process typically takes in each state. Regardless, I am sure Google will be back in business in these states at some point and are not simply closing the doors.
In the meantime this may be great news for all other mortgage rate table competitors.
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4 Comments
Definitely opens the door to grow other platforms. Bills.com has developed our own industry leading solid mortgage decisioning engine and very high quality leads. These innovations have brought education and transparency to the shopper/consumer and matched lenders with higher intent and higher quality consumers… and lots of them!
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Why exactly does Google need to be licensed when I am sure other companies generating mortgage leads are not?
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Lead Critic Reply:
December 13th, 2011 at 11:28 am
Hi Mike,
I am not a compliance expert, but each state has different requirements for banks, brokers, and lead generators. Many require that the companies collecting the data must be licensed in their state. Those that are not licensed risk be fined. Additionally, many buyers (large buyers) will not work with companies lacking these licenses.
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I wonder how Zillow with their Mortgage Marketplace can do something similar to what the Google Advisor does and they are not licensed in any states as noted on their website:
“Zillow Mortgage Marketplace is not in the business of brokering loans. We are not a licensed broker and have no part in the financial part of a mortgage transaction.”
Any idea on how they are getting around this since they are charging lenders for the leads they get?
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