Brokers react to RateHub announcement

Brokers react to RateHub announcement

Brokers react to RateHub announcement

“I’m comfortable with it and I don’t think there is going to be a conflict of interest; if I’m a broker and … I’ve got the lowest rates and I’m not getting any leads if they’re diverting … why would I stay with the site?” Poirier said. “And if I only get the (lesser) leads, like the preapprovals or small mortgages, am I going to continue to pay fees every month when it’s not profitable?

“If they did that how long would they stay in business as a rate comparison site? They would just be hurting themselves.”

However, some brokers have questioned whether consumers will be swayed to choose the aggregator’s mortgage products over their own if the branding of the brokerage aligns with that of the rate site.

“I think it’s a conflict of interest and I’m not happy about it,” Ray Silvestri of Mortgage Architects told Silvestri said he isn’t sure if he will continue to use the rate site’s services.

For his part, Sanghera believes brokers will feel betrayed by the site that they believed acted as complementary partner in the past – drawing parallels to how his referral partners might feel if he were to usurp their business.

“As a mortgage broker who receives referrals from realtors how likely would I be to receive continued referrals if I were to become a realtor?”


read more > 1 2

  • Blair Anderson 2014-07-15 12:32:18 PM
    Looking for an online alternative to generate leads without participating in rate buy-downs? Promote your professionalism and leverage your social campaigns on It’s a model that consumers demand, and one which you can thrive in. Being part of a national community of mortgage industry thought leaders is the best way to not only keep up, but to pull ahead.

    All it costs is your time.
    Post a reply
  • Michael Mullis, president, Mortgage Teacher 2014-07-15 12:32:46 PM
    Well, we can all see that true North pays a ratehub good money for their leads, clearly… True North is all over all of the rates throughout the ratehub site… It would be interesting to hear what Dan at True North feels about this?… Will they keep putting the same budget in to Ratehub ?

    Also a good thought.. If great hub is going to hand leads out the same, then why would Laird move to a different a brand new brokerage, in fact ... Whole new brand.

    Jivan makes a good point, we as brokers have helped pay, and build a Ratehub "Brand".. Now that Brand is our competition.

    Will be interesting to see if the service stays the same to us paying brokers.
    Post a reply
  • Slippery Slope 2014-07-15 12:53:38 PM
    This should be no surprise. The obvious strategy of any direct to consumer approach (and a rate site is a direct to consumer approach by definition) is to disintermediate the middle man, namely the mortgage broker, and create a straighter line connection between online demand and manufacturing supply. This strategy necessarily inserts the "website and fulfillment center" as the new middleman.

    Brokers should not be surprised. They act as free and variable cost labor that is a useful surrogate until such time as the website hits critical mass and the economics support in-house processing and fulfillment.

    Amazon does not refer its book leads to Barnes & Noble. And iTunes doesn't farm out its online leads to H&M. Last I checked Netflix didn't enhance the business of Blockbuster.

    This would result in increased inefficiency, cost and extra layers that is counter to the "straighter line" mantra of any direct to consumer online strategy.

    The good news is that taken to its obvious conclusions rates sites will ultimately strive to teach consumers to "do it themselves directly" and in so doing sow the seeds of their own creative destruction as they develop a market large enough for the banks and mono-lines to simply keep and spend their fees financing their own "direct to consumer" online strategies.

    In the medium term they cannot win -they are merely a new middleman eventually ripe for disintermediation too - they are neither demand nor supply.

    Service and expert advice anyone?
    Post a reply