Detroit-based Quicken Loans has partnered with Vrbo®, a world leader in vacation rentals, to allow rental income earned through Vrbo to be used to qualify for a mortgage refinance. This program uses confirmed and documented rental income so homeowners can more accurately illustrate their full income stream. Mortgages for primary residences, vacation homes and investment properties are all eligible through this  new program.

For the first time, Quicken Loans clients can use income generated from offering their properties for rent as vacation homes on Vrbo to qualify for a conventional mortgage to refinance their mortgage. Traditionally, rental income can only be used to qualify for a mortgage when it is earned from a home that is deemed an investment property, not short-term rentals. Through this program, homeowners can use Vrbo income to qualify for a refinance if the rental income is from a primary residence or a second home. Quicken Loans is the only lender that allows clients to use Vrbo income to qualify for a mortgage.

“Vrbo helps homeowners use one of their biggest assets as a source of income. Now Quicken Loans can accurately review that income and consider it when calculating the debt-to-income ratio – a major data point considers when qualifying for a mortgage,” said Jay Farner, CEO of Quicken Loans. “As our economy continues to evolve, it’s important that our lending calculations continue to evolve along with them.”

Homeowners’ Vrbo income that is used to qualify for a mortgage is accurate, real-time recorded data. They can get their earnings statements from Vrbo to share with their Quicken Loans mortgage banker.

“Homeowners who list their vacation homes on our marketplace have a unique financial opportunity to earn extra income. Over 50 percent of Vrbo owners use their rental income to cover at least 75 percent of their mortgage payment,”* said Bill Furlong, vice president of HomeAway, Americas. “For the first time ever, homeowners can use their Vrbo rental income to be considered for a mortgage refinance, unlocking more value and financial returns on their property investments.”

This new relationship is only the latest in a string of mortgage innovations. In mid-2018, Quicken Loans rolled out Rate Shield, which protects homebuyers from rising interest rates. Buyers can lock their interest rate for 90 days without the need for a purchase agreement, so they can shop for a home without the worry of keeping up with fluctuating rates. As an added bonus, if interest rates go down, their rate drops too.

“For Quicken Loans, innovation takes many forms. From reinventing the mortgage process with Rocket Mortgage to finding new ways for credit-worthy, responsible homeowners to qualify for a mortgage, our priority is always thinking about how we can make Americans’ financial lives easier,” said Jay Farner. 

Ally Financial Inc. (Ally) today announced a partnership with Better.com to create a new end-to-end digital experience for consumers looking for a mortgage loan from Ally. In addition to the partnership, strategic-investment arm Ally Ventures has announced an add-on investment to Better.com’s recent Series C funding, significantly increasing Ally’s overall ownership in the company. In this two-fold relationship, the online-only bank will combine capabilities with Better.com to further Ally’s position as a leading digital financial services company.

The companies said that combining the capabilities of Ally Bank with the digital platform of Better.com will bring speed and simplicity to the mortgage origination and funding process, creating a truly digital experience.

[adbutler zone_id="325884" type="asyncjs1.1" ]

[adbutler zone_id="325888" type="asyncjs1.1" ]

"Providing frictionless, digital experiences to our customers is core to Ally's strategy. We're revolutionizing digital banking by putting all of our customers' core financial services needs at their fingertips," said Diane Morais, Ally's President of Consumer and Commercial Banking Products. "With Better.com, we will deliver best-in-class mortgage experiences in a highly innovative and scalable way, furthering our role as a financial ally for our customers."

According to the companies, the new partnership speaks to Better.com's cutting-edge innovation and the overall transformation of the financial services industry. Similar to Better.com's existing platform, customers will be able to obtain pre-approval in as little as three minutes and lock in a rate in as few as 10 minutes, creating a more efficient and solution-oriented mortgage process.

"Our partnership with Ally supports our goal of transforming the mortgage industry across the board and delivering a better mortgage experience to all consumers," said Vishal Garg, CEO and Founder of Better.com. "Additionally, with Ally's investment in Better.com, we become partners not only in our shared vision for a seamless customer experience in home finance, but also in the long-term success and future of the mortgage industry."

Ally plans to pilot it’s new capabilities in Arizona, Connecticut, Louisiana, North Carolina, Oregon, Pennsylvania, Tennessee, Texas and Washington later this year, rolling the platform out across the U.S. by the end of 2019.

"Strategic partnerships are an important component of our growth strategy. At Ally Ventures, we look for companies that are disrupting their industries for us to invest in and partner with to bring innovative products to the market. We felt a strong strategic and cultural fit with Better.com," said Ally Chief Strategy Officer Dinesh Chopra. "The mortgage industry is ripe for digitalization, and our investment and partnership will allow us to deliver an industry-leading digital mortgage experience.

Premium Title, a national provider of title and escrow services, and Springhouse, a full-service valuation solutions and appraisal management company, today announced the launch of HomeVal, a home equity line of credit (HELOC) hybrid solution that provides combined title search and valuation data for lenders. Consolidation of title and valuation information in one report can help lenders shorten the amount of time it takes to close a HELOC loan.

Lenders originating HELOC loans often absorb consumer closing costs due to market demands on small balance transactions. HomeVal provides lenders an economical solution to satisfy title and valuation requirements at a lower cost than traditional title insurance policies and property appraisal reports.

Key features of HomeVal include:

• Tier I: Express – Provides estimated value, confidence score, last sold price and date, assessed value and year, current owner and full legal description.
• Tier II: Full – Provides features included in Tier I: Express, plus historical listing and sales information, sales comparable details, market analysis, property photographs and property taxes.
• Tier III: Complete – Provides features included in Tier II: Full, plus manual review of comparable selections to ensure property characteristics are relevant to the subject valuation and a full report of monetary liens recorded after the first mortgage.

“We are in a unique position to leverage two Altisource businesses, Premium Title and Springhouse, and provide a unified solution to support the HELOC lending market,” said Ben Hall, Vice President, Premium Title. “Receiving title search and valuation data in one report, at a low-cost and in a timely manner, helps lenders to be more efficient in underwriting HELOC loans. We continue to listen to and anticipate the challenges that arise for our customers.”