More on Keller Williams Mortgage
Ok boys, 3 straight days of KW Mortgage. How much did they pay you for all the free advertising? It’s really a non event. At the end of the day it will be about service and whether they deliver any.
I believe that many are missing the point on the reason behind Keller Mortgage as it relates to agents and consumers–LEAD GENERATION!! As Brian and Frank rightfully tout the real estate and lending business are first about LEAD GENERATION. If you have no leads you are pretty much out of business. This is what Zillow, Trulia, REALTOR.com and many others are all about. In fact, in any sales business you are only as successful as your lead generation activities. There are very few activities that Gary Keller begins that have not been run thru the legal review and I am positive this one has as well.
This is a smart move by Keller Williams and move that will take market share. Keller Williams is already one of the fastest growing Real Estate franchises and now they are going to be able to offer their agent lower desk fees in turn by agents referring mortgage and title business to the broker.
Every Real Estate Franchise will own a lending arm and title company in the next 5 years.
However, customer service will always trump in house lending. Mortgage companies are going to need to learn how to be better at all aspects of their business. Consumers are going to learn to shop which includes rates, fees and customer service.
This move by Keller Williams should serve as a wake up notice to all lenders, but Keller Williams is just the start to a massive change in the industry. And for all those loan officers looking for the CFPB to step in should understand they are not going to do anything.
Can’t pay based on volume either that is CFPB violation
The larger KW offices have always had “in house” lenders that had LO from different companies that are housed in the office. There was always a push to use them, but those of us who already had relationships with LO still used our preferred lender. Keller is a training company find brings in tons of new agents who know nothing about lending nor gave a preferred LO. In house LO filled a role of educator as well. I see this as KW’s way of controlling the consistency of the products offered across the company and providing an alternate carrier path for their graduates of their schools. If their products are more competitive then counter with a better product. It’s all about serving the consumer right? I agree KW will likely not have as experienced LO or processors which may be problematic and I would play the “wait and see” card before sending clients to them as I believe most seasoned agents will who work there.
This doesn’t seem very new or different from most big brands. I’m in the St. Paul/Minneapolis area and some of the biggest brokers have their own mortgage company. Coldwell Banker Burnet has PHH Home Loans and Edina Realty (owned by Berkshire Hathaway) has Edina Mortgage (Home Service Lending). It all seems the same to me. This seems to be along the lines of Quicken Loans. Most experience agents understand the importance of their relationships with their lender and I don’t see this changing that.
I was at the roll out of Keller Mortgage in one of KW’s main offices, I talked to the spokeswoman who had no clue who their investors were. It sounds like they are a broker or at best a correspondent. I don’t know if Gary Keller is naive or what but he must know realtors are fiercely independent and fiercely loyal to their loan agents. Unless Keller Mortgage is a seller servicer (which I doubt), they have nothing to offer that their realtors loan reps don’t already provide. I was the first inside rep at Coldwell Banker in Palo Alto 20+ years ago and all I did was pre-quals, no loans at all!! The loan reps getting business at KW are the best in the business, and you think a realtor is going to risk his commission, reputation and referral business by trying a new unproven model? Good luck with that Gary!
On a large scale, this won’t work very well. It works well for me personally because I have been lending since 1994, but I have seen large companies try this before with in house lenders and it ultimately fails, mostly because they don’t get good Loan officers. My buyer clients love it ! However, it truly only works because I am an experienced loan officer that also sells houses.
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