Google Getting in to Mortgages?
photo credit: woodleywonderworks
Since Zillow launched its Zillow Mortgage Marketplace it has received over 28,000 loan requests (see Zillow Mortgage Marketplace Borrowers Have Spoken). Pretty good showing for a service that is only a little over a month old.
But it seems like Zillow is not the only online player who’s eyeing this market as an opportunity… word from SearchEngineLand that Google UK has launched Google Merchant Search - a way for consumers to compare and shop for loans from various originators (see FAQ).
No word whether this service will make it to US shores and how Google may end up integrating the service into its search results, though I could see them implementing the service into a Google Search for mortgage loans - much like how they integrate property listings from Google Base into real estate searches (see Another Hint at Google Real Estate?).
If they did, it could be a real blow to the services provided by Zillow and LendingTree and others.
(h/t screenwerk.com)
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Graeme | Jun 2, 2008 | Reply
When does Google just buy it's “favorite” RE and loan website?
david | Jun 2, 2008 | Reply
Hi Joel, it's David G from Zillow.com,
If you check out the screenshots you'll notice that this service doesn't compete with custom mortgage quotes from Zillow Mortgage Marketplace. Google's service appears to be a lender directory with sample rates and sample fees. I commend any innovation in the mortgage industry but when you apply for a mortgage you quickly learn that you can't take sample rates to the bank.
On Zillow, borrowers receive customized loan quotes that are tailored to their specific transaction and to their personal finances. Zillow is still the only place borrowers can get anonymous custom loan quotes and compare them side-by-side. Borrowers on Zillow also uniquely rate and review lenders' performance which provides a valuable feedback loop for other borrowers trying to choose between lenders.
linkaz | Jun 2, 2008 | Reply
Most lead generators are dependent upon Google for traffic. Re-routing searchers to a Google sponsored offering could be damaging, no question. Thankfully offering comparison shopping tools is probably too far in the content category for Google to really make a stand. More likely would be Yahoo, or MSN doing something like this for real. - Linda Ratezip.com
beatyouthere | Jun 2, 2008 | Reply
Not exactly David G. If you would check out the Lenders/Financing tab over at http://www.beatyouthere.com, you will see the MortgageBot LLC technology where we users can view real time quotes that users can view without submitting personal information (lending tree). When the user is ready to lock in that quote or get more info, they can contact the mortgage company at their convenience.
Jon | Jun 2, 2008 | Reply
I thought Zillow's mortgage service was going to be a great product. It is not in execution much different that Bankrate. The loan officers responding to consumers requests seem to be offering the garbage rates they do on Bankrate just to get the phone to ring. Without policing the offers Zillow or any lead service ends up creating garbage and nothing usable for end consumers.
I agree that Google makes a fortune from is PPC ads and mortgages are some of the most expensive clicks out there. Unless they stand to make more from a new product I can't see them messing with that gravy train.
Jonathan Christopher | Jun 2, 2008 | Reply
Another reason why Google is preparing for world domination. I love Google as much as the next guy but when does it stop?
srascoff | Jun 3, 2008 | Reply
Jon,
Spencer from Zillow here. I want to correct you — Zillow Mortgage Marketplace and Bankrate couldn't be more different. Bankrate provides surveyed, generic rates. Zillow Mortgage Marketplace provides customized rates specific to each borrower's situation.
Regarding whether Zillow polices the offers which lenders provide to borrowers, we have a reputation system in which borrowers rate lenders, and we have a way for the community (including other borrowers) to flag questionable quotes (which we then investigate).
david | Jun 4, 2008 | Reply
Beatyouthere -
Yes, exactly. I do think your mortgage marvel implementation is really cool and I like what those guys are doing but it's a long way from personalized, custom quotes, the loan applications go to only one lender and they're certainly not anonymous. Frankly, it's surprising that the teaser rates from MM ignore something as critical as credit scores and that speaks to the utility of the information borrowers are given before they're asked for their personal info. Zillow is still the only service that delivers on the promise of getting custom quotes anonymously.
VERY nice Zestimate API implementation btw. - have you checked out our neighborhood and city API's? And watch this space - we may soon have more detailed mortgage rate explorers for you to add to your site.