Rocket Pro TPO, the wholesale and partnership business of Rocket Mortgage, is running a month-long promotion that waives the $795 origination fee
The promotion is set to run until Aug. 18 and "there are no strings attached," said Mike Fawaz, executive vice president, Rocket Pro TPO.
That includes the first lien loan not having to have been with Rocket, and no tenure or volume requirements from participating mortgage brokers.
Rocket Pro TPO also recently added an automated valuation model component to its HEL product that goes up to a $400,000 loan amount (most competitors are at $250,000, Fawaz said).
"When you look at that, waiving the fee, as well as our consistent, very, very aggressive pricing when it comes to this product, as well as the turn times. I mean, we're closing these things in 15 days," Fawaz said. "It's a recipe to help brokers in this market."
This promotion has been in the works for a while, Fawaz said, noting that when planning an offer like this, it normally takes two to five weeks to make it happen.
The timing was coincidental with recent events that affect the home equity loan market, including
"This is a great option, and based on broker feedback that it is needed in this market," Fawaz said. "We've seen an increase in this business in the last two to three months, our broker partners are really going out there and selling this product."
Cash-out refis in particular are a competing product to home equity loans. That was one of the why's behind the
With
Fawaz noted Rocket Pro TPO has been offering home equity loans for the past two years, when asked about the Freddie Mac pilot.
But between the dropping of the origination fee and the addition of the AVM, the company is confident it is going to help more borrowers qualify, he said. The company noted that when this promotion ends, the AVM feature remains in place.
The no strings attached comments (Fawaz made this point several times during the interview) seemed to be
UWM also
Rocket is going to monitor the market and see what the reception is to this promo, but the initial feedback is highly positive, Fawaz said.
"My ultimate goal…is how do we go out there to the broker community and put something out there and someone, a broker, a loan officer, are able to use it without having to go through hoops, by having to go through all kinds of things to be able to do so," Fawaz said.