What does an extra 50 basis points off mean to brokers?
September 7, 2021, 1:49 pm
"We knew deep down it was simply the right thing to do," said Austin Niemiec, Executive Vice President of Rocket Pro TPO. "Baking a 50-basis point credit into our pricing isn't something to scoff at given the amount of volume our partners bring in on a weekly and monthly basis, but we wanted to do it so brokers across the country understand that Rocket Pro TPO intentionally and continuously makes shifts in the business to help its partners assist more Americans in securing the loans they need."
When Rocket Pro TPO decided to bake in its 50-basis point "Freedom Credit" into its everyday pricing, the decision was easy to make, according to Niemiec. During a year that has been especially tumultuous for some homeowners, Rocket Pro TPO has been able to maintain incredible growth by following its internal philosophy of "Doing the Right Thing." The credit has been around for a while now, but only recently did the lender inject it into its standard pricing.
"We started the credit back in March and originally thought it would be only a one-month thing," said Niemiec. "But after the groundswell of feedback we received, with brokers from across the nation continuing to hype up this incentive and talk about how great it is for their clients, we kept extending it month after month. We reached this point of critical mass where there was so much positive talk around it that we decided to go forward with the move to keep it in our pricing."
One of the many reasons Rocket Pro TPO was able to bake the credit in is because it has the strength and scalability to do so. It has spent the better half of a decade insulating and reinforcing its business so it is prepared to support partners no matter the market conditions. That is demonstrated by the fact that the 50 basis points was set the pricing when rates were ticking back up in early July. Now that rates are falling back to historical lows, the benefits for brokers and their clients are clear and obvious.
"50 basis points can translate into an eighth of a percent lower interest rate or thousands upon thousands of dollars in savings over the life of a loan," said Niemiec. "Think about what that does for partners and their clients. Brokers can assist more people in landing the home of their dreams because of this reduction and those Americans are thrilled to work with the Rocket Pro TPO partner because they experience more savings than if they went to another lender. It is a win-win."
Brokers like working with the lender, per feedback Niemiec received from partners, because Rocket Pro TPO always has foresight at the top of its mind. Whether it is the account executives who are making sure broker's business is constantly growing or the company's leaders always seeking the next innovative way to ensure partners are supported, the company is always focused on moving toward more success for the entire community.
Niemiec and the Rocket Pro TPO team have big plans for their partners. The lender continues to experience some of its largest purchase volume days and weeks in its history this summer, all on the back of doing the right thing and focusing on how to create positive benefits for brokers. Whether it is the $100 million it has earmarked specifically for tech advancements in 2021, supporting the community's freedom to choose from all lenders or baking in the 50-basis point credit into its pricing, Rocket Pro TPO is seeing all of this pay off in terms of more brokers wanting to work with them to leverage these various benefits – and it will continue to push the needle to support its partners.
Content Solutions Team
Download Mortgage Calculator Toolkit App
Current version for Android devices - 1.2.1