If you want transparency, look at my site. We show the users the rates that brokers pay for the interest and then all you have to do is compare closing costs at that rate. Rates are derived from a constantly updated database of dozens of lenders, which finds the lowest rate among all of the lenders who are in the database. It is a site that allows consumers to see REAL TIME rates, custom tailored to their own situations, considering their credit scores, escrows, loan size, property types, income and even tells you if you can’t afford the size of the property you are looking at. You need to register, only takes a couple of minutes.

http://www.lenderratematch.com

I think the way to “fight back” is exactly as you say; current brokers adopt a transparent model where it is clear that the borrower is the customer. That isn’t as easy as it sounds as you know better than I.

My biggest complaint about Zillow is one you probably haven’t thought about directly but once I say it out loud you’ll see. Zillow knows knowledge is power. Zillow has been extremely clever in getting free knowledge. Look at this thread. We’ve given them lots of business model inside information. They even thanked you for it. Same with “Are you the owner,” “share your pics,” “make me move.”

Next? “Hey cash strapped County… we can handle your real estate office transactions for free.”

To answer your post (which is a great one btw) I absolutely am holding them to a higher standard. If they live up to a higher standard then their mortgage customers will be forced to do so as well which should make the process better. There are mortgage people out there who are pushing transparency in the process, who have chosen the upfront mortgage broker business model, who are doing good work for people.

With the power of the crowd and the Zillow brand at stake you create the environment for excellence and accountability that is currently missing from lead generation sites.

Is it fair to do to Zillow? I think its fair if they take it on themselves and they do it to win in the space. What do you think?

Bill Rice-
“Hopefully, Zillow adds your thoughts to their road map.” We love feedback — it drives much of the prioritization of features & improvements we add to Zillow. I’ve already forwarded this analysis to our mortgage team to read over.

Thanks again for the thoughtful post Morgan.

Thanks for your thoughts. I agree with you that there are some things inherent with the mortgage process that make solving some of these key issues impractical right from the outset. That said, getting them on the table and working to address them is what needs to be done to build a better mousetrap.

I agree with you that what Zillow does best is PRESENT INFORMATION. If they can leverage that core strength to improving the consumers understanding of the mortgage process and the rates and fees that get thrown around with no context they can make a meaningful difference in the lead-gen game. One that will benefit not only consumers – but one that could provide a huge win for the mortgage companies that choose to partner with Zillow.

Thanks for the feedback. You are right the epic battle – giant squid and sperm whale, mongoose and snake, marketing and sales; always juxtaposed, always at odds – completely reliant on one another. If they can find a way to harmonize this relationship it will benefit the consumer with a more realistic process (as you said answering the question “is that a real deal?”) and not putting the mortgage originator in the batter’s box with 2 strikes on them before they even start.

On filters the key is finding that area where the lawyers feel comfortable allowing some control of the process while not making Zillow liable for the actions of others; always a challenge, and one frankly that has stymied much improvement over the lead-gen game for the last few years.

Thanks for your comments.

A couple of thoughts (and thanks for your comment, by the way) in regards to your concerns:

1. I am not sure of your relation to the industry or if you are a consumer or what perspective you are viewing Zillow from; but their web traffic, registrations and ad revenues would all point to a value definitely being provided. 4 million people a month are going there for some value, real or perceived. And those 4 million people inherently have value to them. They also have a lot of other options as to what they choose to do with their time; and if they all, in aggregate, feel coming to Zillow is worth something than we can’t discount that.

So whether you feel there is value there or not; the numbers seem to suggest that many people do feel there is a value in what they are doing. And I would be in that latter camp – I feel that they have revolutionized the way that people think about real estate and their home. Whether the data is the best or not has almost become moot, as homeowners have decided that access to any data, in a way that they can understand, with out having to go through a gatekeeper, has value.

2. From my understanding Zillow doesn’t want to make mortgages and sell them. From my understanding Zillow wants to act as a go-between or lead generator for existing mortgage companies by turning their monthly traffic in to a monetizable asset through lead sales. I think if they were to sell mortgages they’d be faced with the challenges that all originators are facing; if they focus on simply generating leads in a more consumer-friendly (and business-friendly) manner they have a shot at that.