Published: Feb 8, 2016 2:26 p.m. ET
Quicken’s ‘Rocket’ mortgage process raises eyebrows
“You could easily get home financing on your own phone, ” according to your Super Bowl advertisement.
It had been an advertising for Quicken Loans’ Rocket Mortgage, therefore known as as it attempts to link candidates with mortgages in only eight moments. That’s all of the time that’s needed seriously to obtain a mortgage – not merely a pre-approval, Quicken claims.
When customers have mortgages, it is an attempt into the supply for the whole economy, the commercial informs us.
For most audiences, that hit a touch too close to home to your business design that cratered the economic climate in 2008.
Uhhh. This #RocketMortgage ad simply explained the subprime mortgage crisis right? #SuperBowlAds
In the event that you asked bankers whom worked in fixed income in the time and energy to explain 2008-era logic re: MBS, they may have just shown Rocket Mortgage advertisement
Quicken ended up being busy protecting it self on Sunday.
@espiers The mortgage world is drastically various now, Elizabeth. Most of our loans continue to be underwritten to agency directions. 1/2
@dougchia Douglas, financing now could be more rigorous than pre-2008. Agency loans have actually strict directions for credit, asset, and DTI ratios (1/2)
Nevertheless the “8-minute mortgage” claim is just a bit deceptive – and Rocket, at the least as it is working now, won’t end up being the type of mortgage mill that enabled the economic crisis.
Rocket’s breakthrough would be to enable candidates to import initial supply papers like paystubs and bank statements, as opposed to permitting candidates input information which should be confirmed later on in a submission that is separate.