Zillow’s mortgage head Erin Lantz recently told me that Zillow Home Loans’ No. 1 priority is to support Zillow Offers.
Zillow Home Loans plans to ramp up to closing 3,000 loans per month within three to five years by making loans to folks selling to Zillow Offers when they buy new homes, and making loans to folks buying Zillow-owned homes.
Here’s why I think Zillow brings more opportunity than threat to lenders:
As noted above, Zillow received 25 million requests from borrowers asking to be paired with lenders in 2018. Assuming lenders buying these leads only close 2% of them, that’s 500,000 loans.
The lender Zillow bought inAugust 2018 is now called Zillow Home Loans, and they only did 4,000 loans last year.
In the next three to five years, Zillow Home Loans wants to grow this to 36,000 loans per year, and plans to do so by supporting Zillow Offers activity as noted above.
Meanwhile, Zillow is doubling down on providing mortgage leads to the industry.
Also remember: Zillow is a giant. They’re big enough to provide leads to the industry while also spending the next three to five years supporting Zillow Offers as a lender.