We are receiving feedback directly from Bankrate and from lenders that they are not required to send FHA and VA fees to Bankrate. Because we require our lenders to do this, we are putting them at a disadvantage when advertising on Bankrate. We need to make sending these fees optional.
Email from Customer on the topic:
I want to get you involved in this discussion, because we are officially at a loss here. I’ve already spoken with Dennis and Chris about this, so I figured I’d move on to you. Mortech’s insistence on passing fees through to Bankrate that they don’t require (specifically the upfront premium on FHA, and the funding fee on VA), and your competitor’s don’t pass on, is costing my company what I would conservatively say is 20-30 additional loans a month. I understand what Mortech’s thinking is, but it’s not up to you guys to be Bankrate’s judge, jury, and moral compass. While you guys refuse to budge on this, we are literally losing money by the day. Coincidentally, all of that money your customers are losing, is going directly to your competitor’s customers. It’s really a bad look.
I will not mention names, but I’ve spoken with a couple of your other customers about this, and they are equally dissatisfied. One of them even joked that it was too bad Optimal Blue’s conference was last week, because if it were next week, they’d probably be booking a flight to get in front of them.
We’ve always been a Mortech customer for two main reasons. First is that we have developed a great relationship with you all. We truly enjoy seeing you when you are in town, or out at the conferences. I had a great experience going up to your office to work with Dennis on Zillow issues. We really do value your continued work on helping us be successful. The second reason is that you guys are more affordable than the competition. We feel that we save a good amount of money annually by staying with you over the competition.
All of that being said, sometimes business decisions have to be made based on business, and separate of personal feelings. That $25K in savings doesn’t really means as much if we are losing this many loans. We could make the switch, and recoup that amount in about 60 days just from all of the government loans we would pick up. Government deals are where we are the most competitive and make the most money. You have access to our pricing and margins, so you can see that yourself. I’ve spoken to both Ryan and Jamie about this, and we are all in agreement that if something doesn’t get changed on this ASAP, we are going to start looking around at alternatives.
|Revenue or Retention?||Retention|
|Impact to Existing Customers||Multiple|
|Customer ID(s)||FMS, Consumer Direct, others|
|Business Value||4 - Important to many, significant impact on brand, significant competitive advantage|
|Urgency||3 - Moderately time constrained|