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>The 2% is paid through closing and not as a payment to the borrower. Most likely through the profit that Zillow would get by underwriting your loan and then s
by senttoschool 3y ago
>The 2% is paid through closing and not as a payment to the borrower.
Most likely through the profit that Zillow would get by underwriting your loan and then selling it to the government. IE, if Zillow makes 4% on your loan, they will give up 2% to earn 2%.
- bojangleslover 3y agoThen why are they doing this? Do you think the “good guy” narrative they’re pushing with it is truly good enough marketing to justify eating several % of their profit margin on originations?
- senttoschool 3y agoFor volume. Zillow Loans is trying to make a name for itself. Right now, mortgages are still dominated by traditional banks and companies like Rocket Mortgage.