Rocket Pro TPO announced today that it is waiving the $795 origination fee on Home Equity Loans (HELs) from July 15 to August 18, 2024.
The announcement follows last month's introduction of Rocket Pro TPO’s new automated valuation model (AVM) for home equity loans. According to Rocket Pro TPO's website, the automated valuation model (AVM) is software that uses existing property details to generate a property’s estimated value. AVM appraisals are valid only for Home Equity Loan products.
Per a Rocket spokesperson, the offering makes it even easier for homeowners to tap into their home equity without affecting their current interest rate. On average, Rocket clients can be cleared to close within 15 days, six days faster than the industry standard. The spokesperson added that Rocket offers home equity loans for up to $500,000 compared to the industry standard limit of $350,000.
The Detroit-based lender announced that it permits the use of automated valuation models (AVMs) for home equity loans up to $400,000, nearly twice the limit set by other competitors.
"This is not about timing, it's about the AVM product being available which will put our broker partners in a position to offer this and win," said Executive Vice President of Rocket Pro TPO, Mike Fawaz in an interview with NMP. "Homeowners are sitting on record-breaking home equity and they need cash. Now they can use the products, close in 15 days, and have access to their equity without sacrificing their low interest rates."
Fawaz also added that the initiative is for all broker partners, who were notified today about the waived fees in Rocket Pro TPO's broker portal, as well as through other mediums like a video Fawaz put out.
"In a market like today where borrowers are sitting on equity, we're all about pricing consistency and providing a boutique service," Fawaz added. "Our goal is to roll out impactful products brokers can use, no strings attached."
Fawaz clarified that the July 15 through August 18 time period is the lender "testing out how the market reacts."
"This is just another tool for a broker to have under their belt, whether they've been a broker partner with us for 10 years or one day," Fawaz said. "We're recognizing where the market is at and continuing to invest in the broker community."
