CU Times: Many bankers complain that regulation is driving them from the market. Is that an advantage for companies that rely on technology, in that regulatory complexity is a rules-based world inviting a technology solution? What's your view? Is the regulatory environment curbing the growth of Quicken Loans?

Hadiaris: Lenders who don’t implement technology as the driving force in their business will be left behind in today’s evolving market and regulatory environment. We started incorporating technology into our business in the mid- to late ’90s and built a centralized platform that allows us to seamlessly lend in all 50 states. This scalable, technology-driven loan platform is leveraged from the beginning conversation with a client all the way through servicing for the life of the loan. This approach allows us unprecedented visibility into the entire loan process and is what has driven our exponential growth, and allows us to quickly adapt to ever-shifting regulations.

CU Times: Obviously, credit unions prize their relationship with members. Your advertising talks about users being able to complete a mortgage "without ever talking with a human being" — as apparently being a good thing. How is this so? What need/frustration are you responding to?

Hadiaris: The verbiage you’re referring to is specific to Rocket Mortgage, the first completely online and on-demand mortgage process. Our research has shown that as many as 60% of potential buyers are currently choosing to sit on the sidelines and not participate in today’s housing market. The No. 1 reason they give for not purchasing a home is that they feel the process is too cumbersome and intimidating.

Also, many consumers can’t, or simply don’t want to, navigate the mortgage process solely within the limited hours of traditional banks. A growing number of them have the expectation that they can do anything online at any time, whether that’s shop, book a trip or even see a doctor. Rocket Mortgage meets this expectation.

Rocket Mortgage is also about giving consumers a choice. For those clients who would like to consult one of our home loan experts, they are available any time they need assistance to answer their questions and guide them through the process.

In regard to relationships, Quicken Loans’ reputation speaks for itself. We’ve won the J.D. Power award for customer satisfaction in mortgage origination the past six consecutive years, and highest in client service in servicing the past three years — the first three years we were eligible for the award. These studies are all based on client feedback. And 95% of our clients would recommend Quicken Loans based on closed client surveys.

CU Times: You’ve aired ads at the last Super Bowl and in conjunction with the release of the Star Trek Beyond movie, which opened July 22. What allows nonbank lenders to spend heavily on advertising? I assume it has something to do with not having money stuck in the ground.

Hadiaris: We can’t speak for other lenders. As opposed to a brick and mortar-based model, we have a marketing and technology-based model where we can quickly adapt to, reach and interact with our clients wherever they may be.

CU Times: What is the profile of a typical Rocket Mortgage customer?

Hadiaris: Rocket Mortgage users vary broadly across the spectrum in terms of demographics, credit profile and current financial situation. However, there are some interesting statistics that have arisen since we launched the process at the beginning of the year. Two thirds of Rocket Mortgage users are looking to buy a home, and of those, 72% are first-time buyers. This is direct proof that homebuyers, many of whom are millennials, are embracing the online process.

Read more about the warp-speed growth of nonbank lenders in the Aug. 3, 2016 print issue of CU Times.