By the looks of their rapid-fire responses on social media, the folks at Quicken Loans knew they'd be courting controversy with their commercial promoting the Rocket Mortgage app during Super Bowl 50.
The 60-second spot, seen below, argues the
Social media quickly blew up with comments from people convinced Quicken's product will usher in a second housing crisis by lending to unqualified borrowers. And then the Consumer Financial Protection Bureau joined in.
When it comes to
#mortgages , take your time, ask questions and#knowbeforeyouowe .https://t.co/UUaGyWDbzk — consumerfinance.gov (@CFPB)
February 8, 2016
The CFPB's tweet — which was posted shortly after the Rocket Mortgage commercial aired, but doesn't expressly refer to Quicken Loans or the Super Bowl — implicitly warns consumers to be wary of technology in the mortgage application process.
Given that the CFPB has been
Nevertheless, the widespread backlash has reopened a familiar debate: how fast is too fast to obtain a mortgage?
For many football fans on social media during the game, it would seem "at the push of a button" is too fast.
Is anyone else terrified by these Rocket Mortgage commercials. Didn't we learn that some people just can't afford to own a home?
— John Thibodeaux (@john_ThiBOdeauX)
February 8, 2016
Hello 2008,
#rocketmortgage would like to bring back the mortgage crisis with a lack of due diligence for applicants.— Jen (@nutcase101)
February 8, 2016
Hello 2008,
#rocketmortgage would like to bring back the mortgage crisis with a lack of due diligence for applicants.— Jen (@nutcase101)
February 8, 2016
Shopping should be easy. Ordering pizza should be easy. Getting a mortgage should NOT be easy.
#RocketMortgage sucks.— Jen (@nutcase101)
February 8, 2016
I had this terrible dream last night that someone bought ad time on the Super Bowl to suggest doing the financial crisis again
— Dan Munz (@dan_munz)
February 8, 2016
Uhhh.... This
#RocketMortgage ad just explained the subprime mortgage crisis right?#SuperBowlAds — Tejal Patel (@newscommander21)
February 8, 2016
The average consumer wasn't the only one to join the conversation: actor Steve Carrell, who stars in the recently-released film adaption of "The Big Short," tossed in his two cents
#bigshort https://t.co/rjh4yO8I0N — Steve Carell (@SteveCarell)
February 8, 2016
And across the internet, from
But
Quicken Loans' replies to direct tweets and mentions about the commercial indicates that not only the mortgage industry, but consumers themselves, are not yet ready to have mortgages and technology mix.
@SidKulkarni88 Hey, Sid, lending guidelines are a lot dif now than they were pre-2008. These are fully underwritten, agency conforming loans— Quicken Loans (@QuickenLoans)
February 8, 2016
@piecakens Thank you! Rocket Mortgages are fully underwritten. We took the pain associated with mortgages out. Same process, more convenient— Quicken Loans (@QuickenLoans)
February 8, 2016
@john_ThiBOdeauX 1/2 We want our clients to be able to pay for their homes. We do that by following strict and necessary regulations. 2/2— Quicken Loans (@QuickenLoans)
February 8, 2016
@lantHuk These are fully underwritten loans. We verify info from trusted partners so you avoid the hassle of collecting all the paperwork.— Quicken Loans (@QuickenLoans)
February 8, 2016
While the general public's skepticism is understandable, the CFPB's reaction points to a much bigger problem: does the bureau even know what it wants from the mortgage industry?
The CFPB's message seems to be clear: paperless is the way of the future. Make it easier and more convenient for people to wade through the mortgage application process. And do these things
Except its actions at every turn say, "No, don't."
If technologies like Rocket Mortgage work as they are supposed to, and official paystubs and tax information is obtained straight from the source — banks, state and federal government agencies — without the potential to be doctored by a middleman, then the CFPB should be championing their use, not stoking fear in a consumer base that still, largely, doesn't trust banks and lending institutions.
As hard as Quicken
Additionally, lukewarm support from a regulator leading by enforcement is arguably one reason (the other being investment) that lenders are shy to
Wrote this for
@NatMortgageNews a bit ago. A totally mobile mortgage not possible. Tech isn't there yet.https://t.co/YPD5nE4TOA #SB50 — Jessica Huseman (@JessicaHuseman)
February 8, 2016
However, blame for the backlash doesn't lie solely on the regulator's shoulders. The commercial itself didn't do Quicken any favors. Its message — that buying a home will buoy demand for things like custom-made furniture and blenders, thereby leading to a booming American economy — is a good one. But Quicken buries the lead, and watchers were still thinking "the process of buying a home SHOULD be intimidating," instead of following Quicken's train of thought and focusing on how they could do their part to keep the economy bustling.
Unless the whole point was to get people talking — the Internet loves nothing more than immediate outrage — in which case, Quicken exceeded in its objective. By using social media to interact directly with consumers, Quicken provided an opportunity to engage with people who are either uninformed about the mortgage process or haven't even given any thought to the idea of buying a home, and answer their questions in real time.
Whether consumers believe those answers and will adopt technology when the time comes for them to buy homes remains to be seen. With the CFPB waffling on the use of technology, though, there's no excuse for them to try.