Mortgage industry veteran says consumers are being treated as leads to be sold rather than customers to be served
The mortgage industry has a transparency problem that’s costing consumers both time and money, according to Abe Lee, Visbl, CEO of mortgage technology company Tongo. While other industries have embraced instant, transparent pricing, mortgage lenders continue to hide behind lead capture forms that harvest consumer data without providing real value in return.
The Hidden Cost of “Free” Rate Quotes
“The typical customer would go on the internet and search ‘best 30-year fixed mortgage,’ and they would go down this list of 20 questions,” Visbl explains. “What’s your name, email, phone number, date of birth… and then that institution would say ‘thank you very much, we’re not going to offer you any information, but we’re going to have 50 guys start emailing you and calling you because you’ve now entered the lead funnel.’”
This practice, Visbl argues, represents an outdated approach that prioritizes lead generation over consumer empowerment. While other industries have moved toward instant, transparent pricing models, the mortgage industry continues to treat consumer information as a commodity to be monetized.
The Travel Industry Parallel
Visbl points to the travel industry as an instructive contrast. “Over 72% of travelers today use travel sites,” he notes. “Even if you’ve got rewards points or a credit card or you’re a frequent flyer, most people want to trust but verify. They want to go on the site and say, ‘Hey, I typically fly this airline, but just in case, let me see what all the other airlines are offering me.’”
This transparency, Visbl argues, either validates the consumer’s existing preference or presents them with better options. Either way, the consumer maintains control of their information and the shopping process.
The Real Cost of Lead Generation
The current lead-generation model in the mortgage industry is riddled with inefficiencies, according to Visbl. Consumers face a clear information asymmetry, leaving them at a disadvantage when trying to secure fair rates. Instead of gaining clarity, borrowers waste valuable time fielding calls from dozens of competing lenders, often with little transparency around actual offers. At the same time, widespread distribution of personal data raises serious privacy concerns and makes it nearly impossible for buyers to make accurate price comparisons across the market.
“Our market research shows that consumers spend hours comparing scenarios – what if I put 5% down versus 10% down? What if I change my purchase price?” Visbl says. “Once they’ve done that research and hit ‘apply,’ they’re not a lead anymore – they’re a customer who has made an informed decision.”
A New Model Emerging
Visbl’s company is pioneering a different approach, allowing consumers to compare mortgage options without entering personal information beyond basic loan parameters. “You go on the site and it didn’t ask you for any personal information. You didn’t have to register at all,” he explains. “I just gave an estimate of a credit score and the amount of the zip code, and here you go.”
This shift toward transparency represents more than just a technical innovation – it’s a philosophical reimagining of the relationship between lenders and borrowers. Rather than treating consumer data as a commodity to be captured and sold, this approach treats pricing transparency as a fundamental consumer right.
The Industry Evolution
“The lending industry has been accused of very bad things over history,” Visbl acknowledges, referencing past practices like redlining and predatory lending. “Everything had a place at some point, until somebody realized that it wasn’t actually good for the consumer.”
Visbl sees the move toward transparency as the next step in this evolution. “The obvious answer is to just be transparent,” he says. “If I show you what it is, then the problem is always solved. It’s when I hide it, or when I send you 120 pages of disclosures to tell you what your loan is, that’s when problems arise.”
