Currently most marketplaces do not have questions for VA that are granular enough to determine first time use or subsequent use for refi's. Amerisave is quoting on Quinstreet and Free Rate Update, neither of which asks a question that breaks this out as one of those uses.
Because they do not inquire, they accept whatever default funding fee we send with the API call. Currently in the marketplace, we are pushing a funding fee of 2.15% for all refi that do not indicate subsequent use.
In speaking with several lenders and Lori, if the refi is not an IRRRL, most refi's are considered subsequent use. We are pushing as if they are converting a conventional loan into a VA refi as a first time use. Amerisave has indicated the best practice, which they use on their website, is to run with the assumption the refi is subsequent use.
By making this change it protects against the appearance of a bait and switch by showing the lower fee when in most cases the higher fee would apply. This isn't an issue for Zillow quotes as they call for the specific information where most marketplaces do not break this out. Zillow also calculates the VA funding fee on their side and ignores what we send so it would have no impact for Zillow quotes.
For Amerisave, this is keeping them from quoting VA products on their two main lead sources, Quinstreet and Free Rate Update.
Best practice would be to overstate the funding fee, rather than running the risk of understating it to the borrower.
The customer needs to default their send correctly. We send them all the information they need.
It would be best, as we go forward with the Point in Time pricing to evaluate these new APIs to ensure we are defaulting to the correct values on everything.
Could we display the default values so there is no confusion about what they are?
Luke and Chris will try coaching these API partners to see if they can do the work first. If they are still providing kick-back, we will reassess this one to determine if it is something that it worth doing.
Chris Gibbons [9:40 AM]
I sent emails to both lead sources. Dave at Quinstreet is out on vacation for a week but I am hoping to have them schedule a call with me through calendly.
I created ZenDesk tickets to use for communication and tracking purposes. I had a call this morning with Rich at Free Rate Update. I am sending him specific communication on what is needed to post the subsequent VA funding fee they would like to post for refi's. He said he will take it to his IT group and with that information and the information provided on the call he feels comfortable presenting it. I let him know if he needed me to get on a call with them as well we could do so.
Dave at Quinstreet shows OOO, on vacation. However, he is actually in the office. Sometimes this is how he weeds through the muck, similar to call screening. He responded to my email with the information below:
Sounds good – I’m going to coordinate with my guys over here and I’ll set up a call to discuss. Thanks!
From: Chris Gibbons [mailto:firstname.lastname@example.org]
Sent: Tuesday, May 23, 2017 10:38 AM
To: Dave Marcelli
Subject: VA Funding Fees
Dave, I was speaking with my product hatching group about Amerisave’s inquiry regarding VA funding feed. If you have some time I would like to get on a call with you to discuss so they can begin quoting VA refi’s with you. You can click the link below to see my availability and schedule a call at your convenience. I think there is a simple solution, hopefully we can discuss soon, thanks.
Rich at Free Rate Update is working with his IT group on this.
Dave at Quinstreet is dragging his feet a bit. He is trying to coordinate a time where his IT group, me, and Dave can get on a call.
Can the customer adjust their default send to apply the correct values?
|Revenue or Retention?||Retention|
|Impact to Existing Customers||All|