So whereas Rock once dealt with its customers over a desk, the company now operates through a Web call center staffed by 200 mortgage consultants who originate and close loans for customers over the Internet. Rock Financial's thinking, Gilbert explained, is that a mortgage application is very complicated and costly, so the addition of loan consultants makes the transaction easier for customers. Other Lenders Following Suit Rock is not alone. Indeed, the success of LoanCity, according to CEO Rick Soukoulis, is its ability to link brokers, customers and technology. Established in August, LoanCity's Web-based service connects consumers, mortgage brokers and lenders through an online service center.
Customers can choose the level of service they receive online.
James Punishill, a mortgage analyst at Forrester Research, said LoanCity and Rock are good examples of companies trying to combine the experience of using a broker and the Internet. He added that the relatively simple act of mortgage refinancing is still the most popular form of loan application made online, accounting for 80 percent of online loans in 1998. To offer the service, which was launched on Labor Day, Priceline has linked with mortgage lender Alliance Capital Partners, a Jacksonville, Fla.-based unitary thrift holding company. One of the main concerns of online mortgage consumers is that company rates often change between the time a customer makes an online application and the deal is closed offline. We give you the rate you see online and lock you in.