The lending landscape in the United States is rapidly changing. Companies like Zillow are announcing their entry into the mortgage lending space, creating a dangerous scenario for banks and credit unions across the U.S.
While Zillow’s mortgage arm is still in its infancy, the real estate giant has a major advantage over established lenders: significant traffic from homebuyers and mortgage leads. As it turns out, many of these visitors come to Zillow from lender websites—and as Zillow Home Loans grows, traditional mortgage lenders may be in serious trouble.
In our newest white paper, What Would Happen If Zillow Converted 5% of Your Bank's Website Traffic?, we investigated how much of their website audiences the top 50 lenders share with platforms like Zillow, Trulia, Redfin, and Realtor.com. The results show that even the highest-performing lenders are vulnerable to losing business from these and other real estate websites.
Here are the top 10 U.S. mortgage lenders facing the highest risk from this audience overlap.
#10: Atlantic Bay Mortgage
Atlantic Bay Mortgage has a combined visitor overlap with Zillow, Trulia, Realtor.com, and Redfin of 124%. This represents a small increase from 2018, when its total overlap stood at 117%. On the bright side, Atlantic Bay’s overlap with Zillow over the same period decreased from 48% to 30%.
#9: Prime Lending
The largest mortgage lender on this list, Prime Lending has a combined visitor overlap with real estate portals of 132 percent. While this represents a decrease of 10% over the past year, Prime Lending’s audience overlap with Zillow remains high at 50%.
#8: Franklin American Mortgage Company
Franklin American Mortgage Company has a combined visitor overlap with real estate portals of 150%, an increase from 97% in 2018. In particular, the lender’s overlap with Zillow rose from 41% to 52%.
#7: Envoy Mortgage
Envoy Mortgage has a combined visitor overlap of 152%, an increase from 127% in 2018. While Envoy’s overlap with Zillow has decreased by 12% over the past year, the lender saw a sizeable increase in its overlap with the other three real estate portals: Trulia, Realtor.com, and Redfin.
#6: CMG Financial
CMG Financial has a combined visitor overlap with real estate portals of 162%, an increase from 112% in 2018. In particular, CMG saw significant increases in its traffic overlap with Zillow and Realtor.com to 67% and 60%, respectively.
#5: FBC Mortgage
From 2018 to 2019, FBC Mortgage had one of the most significant increases in audience overlap of any lender we examined, from 87% to over 176%. In particular, FBC’s traffic overlap with Zillow increased from 39% to 58% in 2019.
#4: Sierra Pacific Mortgage
One of 4 lenders to cross the 200% mark, Sierra Pacific Mortgage has a combined visitor overlap with real estate portals of 204%, a major increase from 60% in 2018. Over the same period, the lender’s audience overlap with Zillow increased from 41% to 69%.
#3: Prosperity Home Mortgage
Edging out Sierra Pacific is Prosperity Home Mortgage, with a combined visitor overlap with real estate portals of 206%. This represents a small increase of 2% from 2018. Prosperity was one of the few mortgage lenders on our list to decrease its overlap with Zillow, from 73% in 2018 to 60% in 2019.
#2: Paramount Residential Mortgage
In second place, Paramount Residential Mortgage has a combined visitor overlap with top real estate portals of 211%. The lender’s overlap increase from 189% in 2018 was largely fueled by Realtor.com, while its audience overlap with Zillow actually decreased from 68% to 58%.
#1: Bay Equity Home Loans
Finally, Bay Equity Home Loans has the largest audience overlap with real estate portals of any lender we studied. Bay Equity’s combined visitor overlap with Zillow, Trulia, Realtor.com, and Redfin stands at over 250%, a significant increase over 2018. In addition, Bay Equity has the highest audience overlap with Zillow of any lender we examined, at 86%.
Reduce Mortgage Leads Lost By Using NestReady
While not all real estate portal websites offer mortgage services, they still pose a risk of business loss to lenders, as visitors can be lured away by ads for competitors. The best way for lenders to keep their visitors from turning to Zillow and other similar websites is to create an end-to-end home buying experience for borrowers—and NestReady offers the perfect solution.
With NestReady’s white-label platform, lenders can offer homebuyers an advanced property search platform that’s tailored to their business, along with customer support to help guide them through each milestone in the loan application process. In addition, NestReady’s realtor network helps users connect with a highly qualified real estate professional in their market. Finally, The behavior-based machine learning and AI tools in NestReady’s loan origination software help loan officers generate mortgage leads and convert them into clients more effectively.