Blog

Welcome to the BeSmartee blog. Enjoy a wide selection of articles related to mortgages, the industry, and real estate.

Myth Busting The Rocket Mortgage Super Bowl Commercial

By Vince Work · Feb 8, 2016 · Mortgage

Myth Busting The Rocket Mortgage Super Bowl Commercial

Image courtesy of Wikimedia Commons, Antares Rocket Test Launch

Did you see it? What was your reaction?

Going all in on a Super Bowl commercial can be one of the riskiest things a brand can do. On the other hand, it can have plenty of upside. A memorable commercial in front of 111 million viewers can give your brand a lot of momentum for years to come.

Heck, I still remember the Bud Bowl commercials from the 1980s. Talk about some mileage on your advertising spend!

However, if your clever commercial spot goes awry, it can also mean you’ll turn those 111 million people into brand haters and not brand evangelists.

Quicken Loans, creators of Rocket Mortgage, went head first this Sunday with the first mortgage themed Super Bowl commercial in history. Even though there was some backlash on social media against the commercial (the backlash on Twitter was surprisingly small), it also gave the mortgage industry a venue to explain the difference between mortgage lending now and what it was like 10 years ago.

But first, let’s look at some of the common issues voiced on social media – there’s a lot to learn from this!

What Were the Responses?

You had a fair amount of people equating Rocket Mortgage to a “recession creator”:

There were also plenty of references to the movie The Big Short:

Finally, there was a decent amount of hammering after they tweeted their Super Bowl commercial video:

But in all honestly, it wasn’t that much backlash when you consider 111 million people were watching the game. With those numbers, a poorly planned social media event could spiral out of hand very quickly.

What’s awesome about these tweeters is they are uber-aware of the previous housing fiasco and how much damage it did worldwide. It’s definitely important that the public speaks up and keeps industries in check. We actually need more of that these days.

However, looking at the public sentiment closely, there are few myths that probably should be busted:

Myth #1 Rocket Mortgage Is Giving Money Away Easily To Create Another Mortgage Crisis.

The truth is, getting a home loan is much more difficult in 2016. The United States government did a great job at creating new legislation that prevents risky borrowers from obtaining a home loan.

What Rocket Mortgage is actually doing is simply improving the mortgage lending process by introducing easier-to-use technology. That’s all. Prior to 2010, getting a home loan required lots of paper, faxing back and forth, and the worst part – lots of errors – that would jeopardize your ability to close a home purchase. Errors are really costly at this stage of the home buying process. Costly for everyone involved.

Technology reduces errors and wasted time. That’s why most of us embrace technology. That’s what Rocket Mortgage was trying to convey – not to fund just about anyone and put the world into another economic catastrophe. That doesn’t benefit anybody.

Myth #2 Rocket Mortgage is Promoting the Disgusting Side of Consumerism.

The commercial probably could have done a better job of making the economic engine of mortgage lending look more like a job creation chain reaction, and less like mindless spending of consumer goods.

But the truth is, for every home sold, $60,000 of additional revenue is injected into the American economy. That’s because the sale of a home employs:

  • Realtors
  • Home loan officers
  • Title insurance employees
  • Home owner’s insurance employees
  • Escrow employees
  • Contractors (plumbers, tile workers, general contractors etc.)
  • Building inspectors
  • Home improvement stores (Home Depot, Lowes etc.)

The list goes on and on. A home sale is a big event. It’s a big transaction. A lot of work is needed to complete a sale – all the way up to and even months after the buyers move in. The bottom line is that real estate transactions have always been a key part of the American economic engine. That’s exactly why the FHA was created in the 1930s – the government knew home sales were a great way to boost the economy out of the Great Depression.

And yes, mindless consumerism is a bad thing. It’s bad for the environment and most likely bad for your moral well-being. Reduce, reuse, recycle and love people, not things.

This leads into why we created BeSmartee…

Why We Created BeSmartee

BeSmartee was created in 2007 during the onset of the mortgage crisis. Husband and wife entrepreneurs Tim & Veronica Nguyen, with their friend Arvin Sahakian worked in the real estate industry and received hundreds of calls from borrowers, each sharing horrific stories of their mortgage experiences, and why they were now going to lose their homes of 5, 10 and even 30 years.

The idea behind BeSmartee is simple: provide a transparent online marketplace for consumer home loans. Be able to see all the fees, interest rates and costs associated with your home loan before you apply for it.

We hope by creating this technology and along with other innovative companies, we’ll create a world that works honestly and seamlessly for consumers.

Feel free to reach out to Arvin Sahakian (Arvin@besmartee.com) if you have any questions about how we work or regarding our mission.

ARE YOU A LENDER?

See what BESMARTEE’S SMART MORTGAGE can do for you.


Real Estate Commission: Explained, Revealed and Compared
By Arvin Sahakian · Aug 17, 2015 · Real Estate Data

Real estate agents receive commissions from home buyers and sellers, collectively earning over $50 Billion per year. Learn how commission amounts are set, who pays them, and how they work in this article. Read more.

197,736

California Property Tax: Complete List by County 2014-2015
By Tim Nguyen · Nov 26, 2014 · Real Estate Data

List of secured property tax rates for all counties of California fiscal year for 2014-2015. Read more.

126,863

California Proposition 60 and 90: Your Complete Guide
By Tim Nguyen · Nov 28, 2014 · Real Estate Data

If you live in California and are over the age of 55 you can effectively reduce your property taxes when buying a new home. Read more.

66,402

What to Expect During the Home Loan Closing Process
By Arvin Sahakian · Feb 24, 2015 · Mortgage

You've heard the term used before, but what does loan closing mean? Find out all you need to know about the process. Read more.

54,310

The Surge in Foreign Real Estate Investment in the United States
By Laura Agadoni · Feb 24, 2016 · Real Estate

Foreign real estate investment in the United States, both commercial and residential, is a huge phenomenon that is only expected to accelerate, maybe even to skyrocket, in 2016. Read more.

50,343

Houston vs. Dallas: Which One is Better to Live in?
By Amanda Curry · Oct 11, 2016 · Real Estate

Houston Vs. Dallas? If you are considering moving to either of these major metropolitan areas, we've created a resource to help you make the decision process a little easier. Read more.

49,087

5 Illegal Borrowing Activities: Things That Are Illegal When You Try to Get a Home Loan
By Laura Agadoni · Jan 22, 2016 · Mortgage

Whenever there is money to be made or money to be spent, some unscrupulous folks will take advantage, trying to game the system or commit all-out fraud. Read more.

48,433

Does Homeowners Insurance Pay Off your Mortgage if the House is Burned Down?
By Amanda Curry · Feb 8, 2017 · Mortgage

In this article, we explore how homeowners insurance works and what happens in the event of a house fire. Read more.

25,809

16 Ways to Improve Your Debt-to-Income (DTI) Ratio
By Veronica Nguyen · Nov 29, 2014 · Mortgage

Your DTI is used by mortgage lenders to determine whether you qualify for a loan, and if so, for how much. Improve your DTI with these 16 tips. Read more.

25,338

5 Tips on Getting a Mortgage Loan after Bankruptcy
By Veronica Nguyen · Apr 15, 2015 · Mortgage

A bankruptcy will make it very difficult to attain a home loan. These 5 tips will help you re-establish your credit quickly in order to qualify for a home loan. Read more.

20,782