RateSpeed rolls out mortgage pricing tool
Widget can be embedded in any site
By Matt Carter, Monday, June 16, 2008.
A new mortgage pricing tool, RateSpeed.com, went live this week promising to show consumers wholesale rates and yield spread premiums lenders pay to mortgage brokers -- without asking for their personal information.
Participating loan originators and mortgage brokers must also disclose their fees, ensuring a transparent process, said developer Jeff Corbett.
Consumers are asked to provide their e-mail address and fill out 19 information fields about the prime, alt-A or subprime loan they are seeking. In return, they get back five pricing options in loan categories, including 30-year fixed-rate, 15-year fixed-rate, 5-year adjustable-rate mortgage (ARM), and 3-year ARM.
The five options allow borrowers to choose whether they want to "buy down" their interest rate or pay more than the par rate in order to earn a yield spread premium -- cash rebates that can be applied to their lender's fees or other closing costs.
"We don't sell leads or charge for the traffic that we generate," Corbett said. Consumers enter their ZIP code and other information and "we pipe it down to the broker running the local application -- to anyone licensing our application."
Searches are free to consumers. Corbett said his Newport Beach, Calif.-based company, REtech Group LLC, intends to charge a setup fee in the neighborhood of $499 for mortgage professionals who want to install the tool, and a monthly hosting fee of about $199 will allow for unlimited queries.
The RateSpeed tool can be customized and embedded on a banker or broker's Web site, providing pricing information for lenders they have relationships with. In that respect, it's similar to another recently launched loan shopping widget, RateWindow (see story), which Corbett had a hand in developing.
Consumers can also make queries directly from the RateSpeed site, and can receive updated rate information on their requested loan scenario fed to their RSS (really simple syndication) reader, Corbett said.
Powered by Milwaukee, Wis.-based Loan Runner, RateSpeed returns results that include interest rate, annual percentage rate (APR), monthly payment, yield spread premium credit, broker/banker fee, and net cost.
According to the site's blog, RateSpeed will be enrolling 25 mortgage professionals as beta testers. Lenders providing pricing information include CitiMortgage, Countrywide Home Loans, Credit Suisse First Boston, GMAC Mortgage, JP Morgan Chase, Morgan Stanley, SunTrust, Thornburg Mortgage, US Bank and Wells Fargo.
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Submitted by David Podgursky on June 17, 2008 - 4:09am.
Go Jeff...
glad to hear you're up and running with such an innovative tool.
this should help squash the MBA's assertion that there needs to be more transparency on OUR side of the industry - the Mortgage Broker side - and will force banks to disclose all their dirty little secrets that they usually hide until closing.
www.themortgagegotoguy.com <-- soon to be Ratespeed enabled
Submitted by Jay Thompson on June 17, 2008 - 4:31am.
Nice work JeffX, I hope it's insanely successful!
Jay Thompson
Broker / Owner
Thompson's Realty
Blog: www.PhoenixRealEstateGuy.com
.
Submitted by REALonomics .net on June 17, 2008 - 6:36am.
REALonomics would like to commend and applaude this transparent model. This mortgage solution sets the stage for the generation of more consumer-centric models that provide open windows and doors into the lending process. Imagine a consumer actually understanding their loan!
www.REALonomics.net
Submitted by www.ConsumerMortgageReports.com on June 17, 2008 - 2:26pm.
This tool is not innovative. It is more of the same propaganda that the banks are pushing to the government, the public and HUD. ALL this is, is another way for the broker to look like the bad guy and disclosure income they earn, most being small businessmen, meanwhile NO banks disclose the SRP and ALL the money they make on each loan. Hey Jeff, if you really want to do good for the consumer stop buying into the banking propaganda and show the public how much SRP banks make - where is that tool?
Submitted by Jeff Corbett on June 17, 2008 - 4:56pm.
@consumermortgagereports:
Couple of things...
First: This tool empowers brokers. I ran a mortgage brokerage for many years and so developed this tool with 'them' in mind. If you turn transparency forward, achieving a modest degree of ubiquity, I don't care if you're a broker or banker, its all hangin out for everyone to see. The way I see it, brokers have the most to gain here.
Second: You must have never read my blog if you believe I've bought into bank propaganda.
Third: SRP is a fee bankers receive to process, underwrite, fund and properly package a loan into the secondary market. YSP is an option for consumers to finance all or part of their closing costs by accepting a higher interest rate than they otherwise qualify for. Since you come from a mortgage website I shouldn't have to explain why the fees aren't related at all.
Last: I see you offer a 'Transparent Mortgage Widget' on your site. So you appear to be commenting out of one side of your mouth over here and promoting out of the other side of your mouth on your site. Who's really spinning the propaganda here?
Then again, maybe you compared identical quote scenarios on both applications and the reality hit you...Sorry.
Submitted by www.ConsumerMortgageReports.com on June 18, 2008 - 9:07am.
I'm also sorry that you took our comment personally, everything will be OK. Nobody hates you.
Your blog does look nice, very smooth, Jeff. I'm glad that you can count up to 3 as you exhibited in your comment. The widget we subscribed to, if you spent a minute comparing, is not the same as yours and is now superior obvious reasons.
If in the likely event you have further comments directed to us, you should hold them because we will NOT look at this article again. That would only be an obvious attempt to make yourself feel better.
I apologize, your reply still has too many holes for me to spend my time commenting further. Good day.
Submitted by Matt Dunlap on June 18, 2008 - 9:21am.
RateWindow was completely redesigned after Jeff Left Realespace. The business model and online tool features are very different
Submitted by Mark Sanders on June 18, 2008 - 9:22am.
Wow, what a pathetic bow-out. This guy sounds like a prop for some competitor, Ratewindow. ConSumMopro - I think you need to learn to debate more thoroughly. Throwing a jab and running for the hills is a prepubescent sort of dysfunction.
Contrary to your premise, which appears to be weak, I checked out your site and what seems apparent to me, is that you are merely the lesser of the innovative two. It appears you are just a mortgage broker who is peeved at the world for shutting you down. So why do you tout a transparent mortgage app? Your response..."The widget we subscribe to." What does that mean? Are you an advocate of something or is your site just a meaningless canvas for nothing. I think the latter.
My guess is that you will read these posts. Weasels are abundant, but the great debaters are few.
Submitted by Mark Sanders on June 18, 2008 - 12:02pm.
Was Jeff Corbett part of Ratewindow? If so, it appears he's outdone his previous invention, or someone mucked it up. I ran a side by side comparison of Ratewindow, RateSpeed and another transparency tool that makes claims, and RateSpeed delivered far more rates and much more accurate results. I vote for Ratespeed.
Submitted by Matt Dunlap on June 18, 2008 - 4:08pm.
Mark,
I am the one that has "mucked it up", but before I take full credit, can you please give me the loan amount, state and county so I can search our database and find out why the results where not accurate?
I'm am very concerned that RateWindow did not return accurate rates for you, and want to solve this problem you are having ASAP.
Matt
Submitted by Matt Dunlap on June 18, 2008 - 4:10pm.
Oops, results were not accurate...ignore the h
Submitted by Matt Shields on June 18, 2008 - 5:00pm.
RateSpeed is a much better mortgage tool than RateWindow. As a former broker and also a homeowner, I wish I had a tool like this to provide me with honest and transparent rates when I was involved in this industry. I am excited to see the RateSpeed widget on other sites!
Submitted by Mark Warner on June 18, 2008 - 5:02pm.
We're thrilled to have ConsumerMortgageReports as one of our partners who has seen the clear value in our RateWindow product. At the same time, we have great respect for our friend and competitor Jeff Corbett at Ratespeed. We want to make it clear that the opinions expressed by ConsumerMortgageReports were the author's and the author's alone and do not reflect our view of Jeff or Ratespeed. Both RateWindow and Ratespeed are innovative mortgage products that will change the way business is done. Watch out Ditech, Bankrate, and Lending Tree!
We invite anyone to visit RateWindow to look at our rates.
Submitted by Mark Sanders on June 18, 2008 - 7:33pm.
Competition aside, yes, ConsumerMortageReports is a dode. It's knuckleheads like that that make reasonable debates a ding-dong-ditch affair.
Submitted by Jeff Corbett on June 18, 2008 - 7:48pm.
Everyone be nice :) I had an issue with the apparent hypocrisy floated out by Mr CMReports, since he bagged on the idea that this tool was innovative while he promotes something very similar on his site. He had his say, I had mine.
Competition is a good thing and everyone is allowed to play ball.
Submitted by Matt Dunlap on June 18, 2008 - 8:15pm.
Mark
Seriously, can you give the loan amount and possibly first 3 letters of your email so I can find why RateWindow is providing un-accurate rates?
I'm going to stand up for my product. You're no better then CMR, if you make make accusations and then don't provide any sort of backup.
Matt
Submitted by Mark Sanders on June 18, 2008 - 10:17pm.
Matt, Cool down bro. My life does not revolve around your (In)accuracy in relation to being a developer for tech tools. I was simply telling you of my experience with your rates.
I would accommodate you if I felt you needed my help - you dont. There is a much better way for you to find out what's wrong with your feed. Run them against RateSpeed and you'll see how inaccurate they are. Either you guys dont have enough lenders or your data feeds are anemic. I ran Ratespeed against AmPro's up to date programs, and they were dead on.
I'm not CMR, and I didn't bash anyone without basis. In fact, I didn't bash at all. Just stating the facts.
Submitted by Leo GM on June 18, 2008 - 10:42pm.
If SRP (Service Release Premium) isn't related to YSP (Yield Spread Premium), then why does the SRP paid to a mortgage banker go up with a higher mortgage rate just like YSP?
Does RateSpeed show the SRP or overage received by a mortgage banker / direct lender so it can be refunded to the borrower? If not, this just seems like another tool for them to say:
"Look at how those evil mortgage brokers are making money on you poor borrowers!"
Meanwhile, they're thinking:
"Thank God the idiots at HUD, the Treasury and Congress are giving mortgage brokers all the blame (even though they ALREADY HAVE TO DISCLOSE YSP) while we get to hide our SRP / overage!"
If mortgage bankers and direct lenders are in favor of laws that require more disclosure of mortgage brokers, then why don't they disclose the YSP/overage THEY receive for a loan?
Submitted by Matt Dunlap on June 19, 2008 - 8:20am.
Thanks for addressing the "concerned brokers" out there... I'm sure they all really care how you finance your S&*@
Submitted by Tomas Zubicek on June 19, 2008 - 8:37am.
Your welcome..
And this one time, I don't charge a fee for my "colsultants'" services.
Submitted by Mark Sanders on June 19, 2008 - 9:04am.
Tomas, you sound like a colorful guy. Honestly, I don't really come back to blog posts, but this one is entertaining. I'd like to however here from Mr. Dunlap why Ratewindow does not provide the same transparent rates (in abundance) that RateSpeed does? If its not a Ferrari, than (from your colorful parable), it can't even enter the race.
Submitted by Matt Dunlap on June 19, 2008 - 9:42am.
Come on guys...
I know what's up, I know your relations to RateSpeed. this game is over...
This has turned into, "My dad is better then your dad" and to be honest, I'm embarrassed that I even went down this path on a comment trail. I'm getting back to work now. Best of luck with your product.
Submitted by Mark Sanders on June 19, 2008 - 10:58am.
This is a nice prospect Matt, but I am a broker in California, who has been in the biz for 30 years. Like everyone else, I'm in a reorg mode trying to figure out how to be on the right side when the market turns. Are you so surprised that the general public would read an Inman post and respond to something like this. I suspect there will be more.
That said, if I was an affiliate, which I might just be soon enough, perhaps you would be so kind as to answer my question, and maybe you will win a customer, instead of continue to embarrass yourself (self proclaimed).
Why does Ratewindow not deliver the same rates? Are you not really tranparent, or does your technology just not provide what you had hoped.
If you answer my questions, I would be happy to give you my information provided I'm satisfied and have interest in your product. I'd get used to this Matt, you're gonna have to do it most of your day, if in fact you don't have a good response.
I cant speak for anyone else up here.
Submitted by Monte on June 19, 2008 - 1:34pm.
Tom you are right this is all funny. I feel like I'm reading the comics from when I was a kid.
Mark, you stick up for Jeff like you are in love?? I'm surprised. Your right you should be an affiliate with a guy who has a website called http://thexbroker.com/, in fact there should more more xbrokers so we can get back to business.
You guys are like politicians, back and forth, never answering questions, good job Hillary
Submitted by Mark Sanders on June 19, 2008 - 2:25pm.
Three Card Monte, where is the peanut?
Is Jeff cute? I never said I was straight. That aside, if you're an out of work broker like me, who just traded his 360 in for a prius, maybe we could three way. I am waiting for an answer, and should get it, since I am just another dode looking for the next big thing, not a stakeholder in either platform.
Submitted by Monte on June 19, 2008 - 2:43pm.
Mark, I said, "like you are in love" (figurative) I never brought up the straight thing - funny you did
Submitted by Tomas Zubicek on June 19, 2008 - 3:46pm.
Mama Mia,this is great. I never ever thought I will enjoy communication with real estate guys that much..
But humor aside,I think the ratespeed will do important service.
There is a place in the ocean even for sharks, just not for the "crooket" ones. If Ratespeed helps to wead them out, then I say : "God bless Ratespeed"
This debate enlighted my boring, just "loot" collecting day and I hope to meet you all at some next platform.
You guys "rock", seriously..
T.Z.
Submitted by Mark Sanders on June 19, 2008 - 10:20pm.
Monte, I'm straight for the record, but I got a good laugh out of your political disclaimer - good work.
Submitted by Matt Dunlap on June 20, 2008 - 1:29am.
I have a great idea! I was thinking..."How can I make Mark happy?", and I think I got it...are you sitting down?
I don't know why I didn't think of this sooner. Since you are a CA mortgage broker, why don't you try RateWindow? I'll give you a 3 month free, no obligation trial. RateWindow does not manipulate rates at all, it provides YOUR rates directly to the consumers, and I'm assuming your rates are accurate, right?
I'll even be your private personal assistant and make sure there is no funny business going on and put it on at least 10 real estate sites to get you started.
If you don't like it, I won't be offended, at least I will get some good feedback.
Submitted by Mark Sanders on June 20, 2008 - 8:38am.
I think your offer Matt is noble, but my time is quite valuable, even while I try to suck S%-t through a straw and make a buck in this tough market. That said, my determination to be transparent, is more an issue of efficiency for the borrower and for me, rather than just a raw pricing feed - but you know this.
What I want Matt, is not to be given anything for free, but to pay for something of value. I'd like my question answered, if you would kindly oblige, so I can pick my widget. Why does Ratewindow and RateSpeed quote very different rates? I do not want to have my very rare prospects tell me that I am merely translucent rather than transparent. I don't want that kind of egg on my face if these kind of tools are the new paradigm shift. I want to be an early adopter of the right technology.
I remain ready for your explanation.
Submitted by Matt Dunlap on June 20, 2008 - 9:53am.
Like I said, RateWindow displays YOUR Rates to the Consumer, we do not manipulate anything...
it works great to improve you online business profile. I did a google search for "Mark Sander Broker CA" and found nothing, so building your online presence is important in today's market. But if you have been able to forge out a 30 year career as a mortgage broker without any online trail, congrats that is hard to do.
what is really bothersome, is that CA DRE has a nifty tool to check all licensed brokers in CA. I didn't see a mark sanders on there. I would be worried about that, and call CA DRE to get that fixed if I were you
Submitted by Mark Sanders on June 20, 2008 - 10:03am.
You still haven't answered my question and continue to dance around the issue. My name is not Mark Sanders, and I dont use my name for the exact reason you have demonstrated. I don't want programs and hocksters trying to sell me anything I dont want or looking into my personal information without my consent - that is what CONCERNS ME and is BOTHERSOME, it should YOU. Moreover, this is why I like the idea of these tools being ANONYMOUS - get it.
Now, this is my last attempt Matt, and then I am going back to my life and will check this board once a month, maybe. I dont want to hear about your spin, that your product improves my on-line presence. I want to have you answer my question as to whether your product delivers accurate rates to the consumer so I am not embarrassed when they go to yoru competitor RateSpeed, or any other honest broker than is willing to reveal par. Get it?
Simply...does your software deliver the true par rates to the consumer with all the banks or not? Yes or no. And why are they not the same as your competitor, when you both claim transparency.
Submitted by Matt Dunlap on June 20, 2008 - 10:13am.
Mark, If that IS your real name...oh wait it's not...
This has nothing to do with people selling you stuff... you made a fake user account and posted defamatory remarks against my product, with absolutely no proof to back it up. Get off your accuracy trip, I know what you are trying to do, and you have been caught. Your credibility is now void and your a waste of time to respond to.
LOL, I got CSI:Miami on you, and exposed your fakeness!
Submitted by Tomas Zubicek on June 20, 2008 - 12:21pm.
Matt, it is not my concern who Mark is, neither it should be yours.
I had joined the debate, because it was fun to watchim him ask direct question and instead of getting straight answer, all he gets is the same "hooplah" around it.
I'll try to ask the same question..:
"Why, RateWindow does not deliver the same accurate results as Ratespeed ?"
Do you have the answer??
As for Marks staying anonymous, after your thorough check out of his indentity, you just admited to, I need to remember to next time come up with ficticious name too..
I would call myself "Mickeymouse", still it does not change the fact, that when you want to fight for own product, you need to have the right ammo( Facts) ready before you go to a "battle".
All I need to know about Mark is that he is fun and great debater and I wish to meet him in some next debate..
And Monte too...at least he did not spoiled the "soup"....
Submitted by Mark Sanders on June 21, 2008 - 2:11pm.
Well Gentlemen, it seems as if this thread has run its course, and young Matt decided to run for the hills and not answer my question, under the guise of making my anonymity the issue rather than his apparent failure to perform.
The world is a tough place Matt, and it takes balls to compete in it. If you're a runner, stay out of the crossfire on the battlefield.
Submitted by Jay Thompson on June 23, 2008 - 11:33am.
And some people wonder why real estate agents and lenders are considered low life's by many in the general population.
Threads like this one degraded into certainly provide a lot of fodder for those who feel that way.
Jay Thompson
Broker / Owner
Thompson's Realty
Blog: www.PhoenixRealEstateGuy.com
.
Submitted by Matt Shields on June 23, 2008 - 1:47pm.
Wow, what a tap out from Matt. Mark Sanders just took you to the woodshed. I could tell from one trial of using both Ratespeed and Ratewindow, that Ratespeed was much better. Now with your pathetic display on this thread, I know for a fact that Ratespeed is much better. Since you are so inspiring when answering questions, I have a question for you. Why are you on a thread about Ratespeed promoting Ratewindow? Although I am sure you will not answer this question, I am willing to bet that Jeff C. would not be on a thread about Ratewindow trying to promote his product. That says a lot right there. If your product was so innovative and transparent, you would not have to be on this thread promoting it. It wouldn't need it.
Submitted by Daniel Rothamel, the Real Estate Zebra on June 23, 2008 - 3:52pm.
Jay brings up an excellent point.
I don't want to have to remove the entire comment thread, but the tone is going to have to change.
Just a reminder of our Community Guidelines:
http://www.inman.com/community-guidelines
Comments that violate the guidelines WILL be removed, and the users will be warned. Continuous violations will result in the blocking of the offending user.
No one is saying that you can't make a great point or ask genuine questions that further the discussion. What we don't want is flaming and blatant disrespect.
We should all be better than that.
http://www.RealEstateZebra.com
Submitted by Mark Sanders on June 23, 2008 - 7:15pm.
Well thank you Dan for not being a censor. I don't think personal attacks are the play here, but people seem to have a strong opinion about these transparent tools. Check out Jeff C's post on Inman, it's got like 100+ comments.
I think everyone should be cool here, state your opinion, and debate vigorously if need be. Unfortunately, the debate seems to have ended with Matt's disappearance - too bad.
Keep it civil gents.
Submitted by Mark Sanders on June 23, 2008 - 7:25pm.
Jay,
Forgot to comment on your last post. RE pros, generally, are pretty much low life's, for the most part. If that were not the case, the general public, as you said, wouldn't hate em. Realtor's are pretty much regarded as squatters that serve cookies for a disproportionate and unearned fee. Disruptive technology today is pretty much dealing with them at this point.
Mo Pro's on the other hand, as a whole, if you poll their sociological, intellectual and criminal history for that matter, pretty much settle at the bottom of feeding troth. I'm not saying that there are not exception to the rule, but this entire industry, as it sits today, is getting what it deserves. It is the begining of a new era. I like pulling down the curtain and finding a little scared old man that was once a Wizard.