Industry NewsMortgage

ROOT Exchange lets mortgage brokers shop for sales leads

Personal information of loan prospects are traded like stocks
Published on Jul 31, 2006

As mortgage brokers gear up to compete for a shrinking originations market, sales leads could become an increasingly valuable commodity. That's the thinking behind ROOT Exchange, which bills itself as a place where people who have leads to sell can auction them off to the highest bidder. ROOT Exchange claims to be a neutral third party, charging both buyers and sellers for the convenience of doing business in an online setting that allows the market to determine a fair price. "We're not buying (leads) cheap and selling to another -- just connecting buyers and sellers," said ROOT Exchange founder and CEO Seth Goldstein. On ROOT Exchange, "everybody has access to the same information," he said. "You can place bids and (asking prices) and, over time, as more buyers and sellers come on the platform, you get better and better pricing data." Without an exchange where pricing information is transparent, buying and selling sales leads can be a game of hustle and bluff. ROOT Exchange "holl...