Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.
As a confirmed lender and valuable member of the Zillow community, we'd like to give you advanced notification of an important upcoming change in the way lenders participate on Zillow Mortgage Marketplace. Namely, we are introducing market-based pricing for customer-initiated contacts that will roll out over the coming months.
When we launched the marketplace in April 2008, it was an experiment to see if we could build a service that successfully connected borrowers with lenders. The results exceeded our wildest expectations: borrowers are submitting an average of 50,000 loan requests per month, and thousands of lenders are helping these borrowers close loans.
While we are thrilled with the outcome, it has been a resource cost to build this vibrant service. In order to continue to grow the marketplace, make it better for consumers, and create more value for lenders, we need to continue to invest in the business. We talked with multiple lenders to discuss options for supporting the marketplace, and we believe we've settled on a method that is fair and beneficial for both Zillow and our participating lenders. In a few weeks, we will be introducing a new fee system within Zillow Mortgage Marketplace.What is it?
Until now, confirmed lenders have been able to submit unlimited quotes and receive contacts from interested borrowers for free. Under the upcoming new system, lenders will still be able to submit an unlimited number of loan quotes for free, but will be required to pay a market-priced fee when borrowers contact them regarding their quotes.
How will it work?
Just like today, borrowers will submit loan requests and review quotes provided by lenders. When a borrower decides to contact a lender, he can either e-mail or call the lender. When that contact is made, the lender will be charged a market-priced fee.
Lenders will be required to pre-fund their Zillow accounts with a minimum of $250. When a lender receives a contact, Zillow will subtract the price of that contact from the lender's account balance. Lenders can add more funds to their accounts or request their unused account balances back at any time.
How much will it cost?
The market will determine the price for each contact; Zillow will not be setting price. We anticipate prices will adjust as participation increases, and will likely settle out in the $0-$100 range. The price will be shown as part of the loan request, so lenders can use this information to decide which requests to quote. Lenders will also be able to set a maximum price to pay per contact.
We won't know for sure where prices will settle out, but given that Google clicks for mortgage keywords typically range from $7-$25, Zillow contacts should be significantly more valuable. Zillow customer-initiated contacts are borrowers who are ready to close a loan, having already reviewed multiple quotes, ratings, and lender profiles before making contact.
When will it go into effect?
We plan to roll this out in multiple stages. The first stage will begin on November 4 (subject to change). During this set-up period, lenders will familiarize themselves with the new pricing system and pre-fund their Zillow accounts. All contacts will be priced at $0 during the first stage.
The second stage is scheduled to launch on December 9 (subject to change). The market pricing mechanism will be turned on during this stage, and while it will still be free to quote, lenders must have funded accounts in order to continue quoting. Lenders who fund their accounts prior to December 9 will receive 25% off all contacts received during the launch month.
When the first stage launches in November, we will notify you by e-mail. At that time, you can go directly to the Lender Home page to add money to your account. When pricing is initiated on December 9, lenders who do not have funded accounts will not be able to quote.
Are you using the automated Quote API?
With this change, our Quote API will be updated. If you are using a third-party pricing engine, they will make the necessary changes to accommodate this new pricing system. However, if you have built your own API integration, please contact us for an updated specification guide.
Lender rating
Since January 2009
Lender rating
Since August 2009
Am I able to get a refund of my initial $25 spent to become a 'Confirmed Lender" or will that be applied to my account? I can go by leads for a set cost. Why would we continue quoting when you cant give specific costs for contacts? To add to Greg's comment, what is the refund policy for bogus contacts?
Are you charging Realtors the same costs for contacts on their listed properties?
Lender rating
Since January 2009
Lender rating
Since August 2009
"Maybe quoters will think twice now before spamming quotes left and right. Since there is now a cost tied to anybody contacting them hopefully the quality will improve."
Payment Choice, I agree that this might eliminate some of the spamming we see here on Zillow. I am not one of those spammers. I only quote one state and only quote manually. This majority of zillow quote requestors (ZQR's) who contact me are usually not ready to make a loan and only want to see a GFE or would like some advice and no loan is ever made. Essentially I will now be paying to give ZQR's advice. I believe this will hurt the "quality" in the long run as good, honest lenders such as myself will no longer be here quoting.
Lender rating
Since January 2009
The big question is "Is it closer to 0 or to 100" If we are talking $5-10 per contact whatever. But if we are talking $75-100, I do not think anyone can afford $300-500 a week tabs
Lender rating
Since January 2009
"create more value for lenders..."
How???
"talked with multiple lenders to discuss options..."
Really??
"Zillow customer-initiated contacts are borrowers who are ready to close a loan..."
Now THAT is funny...based on what statistical analysis??
I post a picture of a tin foil hat and suggest loan requestors wear it for fear of Zillow reading their minds, but I dont have the energy. Good luck Zillow.
Lender rating
Since January 2009
Lender rating
Since September 2009
"The market will determine the price . . ."
Can someone please explain that one to us? Market: geographical, where most loan requests come from etc? It is way too vague and needs to be expanded upon.
Like others have said, we all can buy qualified leads for less than the range that has been given.
Great marketing though. Get thousands of lender to sign up and then start charging per contact. But, I do have a question or two about that, as Joe mentioned:
1. How is Zillow going to control fake contacts make out of malice? Better yet (not to be cynical) how do we know there isn't going to be a outsource department just firing away contacts raking in the dollars?
2. To roll out this platform, it would have been nice to guarantee some things.
3. Zillow consulted with some top lenders? Who did you consult with to determine this new platform. How many?
4. Are you going to be charging Realtors for listing properties? It seems we are taking it up the kisser but not the Realtors.
In some ways I do applaud this but things need to be clarified.
What I see is the fact that all the spamming, API lenders will go away and Zillow will lose thousands of lenders now. Hopefully, the only ones that stick around will be the honest ones. Or, it simply can work in reverse.
Lender rating
Since January 2009
Lender rating
Since September 2009
This is not going to go well . . .
David G, your staff can't even keep up with all the bad quotes from the API lenders because you don't have enough staff. How are you going to keep QC 100% on fake request contacts? No offense. Your staff does a great job but they are overwhelmed right now as it is, correct?
As I have said many, many times before, how about cleaning up the quote screens before you venture down this road?
I have suggested many times that the borrower needs to input what type of loan they have: FHA, Conventional etc. They need to specify if it is Fannie, Freddie owned. Credit fields need to be installed for compliance and accuracy of the quote.
Launching a platform where we have to pay per contact and we really know jiltch is asking us to become complete idiots and throw money down the drain. Why? What do we really know about the borrower or accuracy of the loan request? Hell, the credit score ranges are still all wrong . . .
Things should have been corrected before we are asked to pay and being denied a reach around.
Lender rating
Since August 2009
"so long as I get some quality control in return..."
Which leads me back to my original question: How is this going to "create more VALUE to lenders..." ???
Where IS the quality control? Where is the more value?
Featured Rates are based on state rates for 5/1 ARM loans and are valid for the date shown, but they may change without notice. They are for consumers with a credit rating of 720 or higher and a 20% or higher down payment. Rate, terms, pre-paid finance charges, and APR may vary based on factors such as creditworthiness of the applicant(s), self employment status of the applicant(s), condo or townhouse structure, loan amount, and geographic location of the property.
If a lender does not offer a national rate, a state rate may be shown next to the lender's name. For example, 'Bank name (CA)'.
... and, it's free and anonymous
Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy
Next steps for Zillow Mortgage Marketplace
David Gibbons, "DavidG"
Seattle
Contributions: 1065
View full profile
Today we are announcing upcoming pricing changes for customer initiated contacts in Zillow Mortgage Marketplace. Confirmed lenders will receive an email with the full details. I'm going to post that email here and have started this thread to answer any questions you might have.
The full email follows:
If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.