Quicken Loans
The Sale (pt. 1 of 11), Cleveland

Note: the following (and the 10 subsequent parts that will follow) are the opinion (based on observation) of a former Quicken Loans employee and/or employees. The 11 parts will demonstrate the big picture of what bankers go through from start to finish (mentally, emotionally, financially) and also how Quicken operates and represents itself. This first installment is an intro to the head of the serpent, so that things are in perspective.

In 1981 Dan Gilbert was arrested for running a 100k gambling ring. Arrested yes, punished no. His only two statements regarding it: "it wasn't that much money" and "I'm not too worried about it..." This was the moment at which he realized; if you put enough effort into something and also have a lot of currency to utilize, you will always come out on top. He "sold" himself on the idea that he was invincible and could do anything he pleased. (One more note about that... If you have an illegal gambling ring... How do you ensure you receive your payments? If you don't know, watch Rounders, because guess what, you can't put it in collections. That said, he was caught because someone involved was quote "scared and contacted the police" for safety reasons.)

At any rate, this is not really a new concept, nor is it always bad. Selling yourself on success and the idea that you will be successful is the first step to accomplishing things you never thought you could. There are very few self-made millionaires that did not work hard to get what they have. That said, there are even fewer billionaires who have not dragged countless underlings through the mud to amass such a fortune. And even fewer multi-billionaires who have done the same thing... Were able to avoid taking advantage of many people.

No one really ever thinks about this but picture this: $1,000, 000,000.00. Really think about it. Unless you sell something worth a billion, or have a company that miraculously has enough sales or revenue to accumulate enough money for the there to be that much left over just for little old you who started the company, how do you get it?

Well, simply, you absolutely have to break the backs of your employees and step on multiple people to get there. That said, Gilbert is actually a multi-billionaire.By that, I actually mean that he personally has access to money amounting to more than 2 of this figure: $1,000, 000,000.00
Honestly picture yourself having access to millions of dollars. Picture preaching to them to: do the right thing, a penny saved is a penny, every second counts, it's not about who is right but what is right, every client every time no exceptions no excuses, obsessed with finding a better way, and many more sayings that to be honest, are really, really good. Cheesy, but good. These are what this company calls ISM's, the guiding moral compass for the company from top to bottom... Or is it?

Let's assume that 2/3 of his worth is tied up in all the businesses and franchises he owns (Rock, Quicken, TSI, Cavs, The Q, Fathead, BizdomU, etc.). That leaves us with 1/3 of 2 billion or roughly $666,666, 666.66. Let's take the figure on Quicken's highly monitored and shielded Wikipedia entry, and assume that there are currently 2,450 employees. Let's also assume that EVERY SINGLE employee is a banker. Why you may ask? We are being generous for the sake of argument. Technically, we are overpromising and underdelivering. Especially since he has been listed at OVER 2 Billion in worth.

Anyways, lets assume also that the market went bad from May to September in 2007 (which it did) and let's assume that bankers with over 2 years at the company will not be fired or put on a performance letter (a forced "quitting" so you may not receive unemployment and you guessed it... Quicken saves money and saves face in the press). Let's also assume there are only bankers (no higher level of pay bankers such as senior, executive, president's club) and all are payed the lowly $11.54 an hour working 60-80 hours a week with no overtime, busting their behinds to ensure the company makes money. I will get to why people do this and other strange phenomenon later. Every loan they write they receive $200 (only once it closes) for and possibly more if there are 0 hang ups, delays, it is done within 14 days of the lead being received, and about 40 other criteria that are called performance measures that "help the client" and "help the company" because it keeps Quicken honest. The truth is, these logistics, like any other sales job, and intended to severely limit the amount of pay you will receive.

Anyways, lets then assume that all of these bankers are expected to write 15 loans a month (comes out to almost 707 loans a week for the whole group), and not all of them can due to: market conditions, unable to qualify clients due to Quicken's response to the market, and each 2 week period they write less than their "goal" (real world = quota) they also start to receive less and less quality leads.

What it comes down to is the company now cannot afford (stay profitable) with the 2450 bankers. So, in one month, they decide to cut the force in half, to 1225 bankers. That means, Dan, Bill, Pat, and Jay KNEW, that by months end on month "X", there would be 1225 bankers walking out the door for the last time (and suprisingly, before 8pm).

So, there are two options:
1.) don't let people know, give them their goal of 15 again (knowing that cannot obtain it... How do they know? Filtered leads, no incoming calls, market trends, industry trends, common sense... To name a few). And let them know that 8 of those need to close and they have to meet the half mark halfway through the month, if they don't, they "agree" (by signing a paper thats states such) to leave because this "just isn't for them." this way they continue busting their ass, do not have time to look for a new job, and one day get call to see their VP or RVP so they can let them know that..."I need your I.D. Badge" "Your check will be mailed" etc. Etc.

2.) Do what reasonable companies have done in the same position, inform the staff "hey guys, it sucks, but we are cutting 50% of our staff, you will receive a good reference, time to locate new employment, a separation pay, a month or 2 of benefits depending on tenure, and possibly unemployment

(insert sound of a turntable record screeching to a halt here)

Wait a minute, I just thought of an option 3! Completely on his own, in good faith, appreciating the work of his slaves, err, bankers, Dan Gilbert himself, the man the myth the legend decides that he would use. 01% of 1/3 of his worth to help these guys out... That's right, one hundredth of a third... Sounds small right? That would be $5442 per banker for saying...

"man, thanks for over 70 hours a week of hell to my benefit... Oh, and to the benefit of Bill, Pat, Jay, the VPs, and the RVPs who make tons of money, still will, and did not lose a penny to see you off, because I just took care of it"

Remember, we assumed the following: his worth is much less, much is tied in businesses and is not liquid, every employee is a banker, and a drastic 50% cut was issued.

Now, would $5442 have helped you? Possibly. Quite possibly. Of course. The problem, is, that would leave Danny with only $1993333550.00 for the year... Personally. Now that is not quite enough to make the bills you know? Poor Dan, I guess I wouldn't do it either.

Now, what if only the top (Dan, Bill, Pat, and Jay) "donated" even less than that, and did to the actual amount bankers lost... Which is obviously less than 1225. Chances are, they wouldn't notice. Chances are, this would also generate so much PR that it would pay back more than it costs. Chances are, there would be much less posts on here, much less law suits, much less deep upset and utter hatred for this company, and most importantly, chances are there would be almost 1000 families better off, simply by Dan himself, relenquishing a minute portion of his wealth, that will grow back anyways, and relenquishing that to people who worked hard to create that wealth to begin with.

But, that is not how you become a billionaire is it? If you were a generous person, logically, you would never even achieve the status of millionaire. And billionaire, well... Hell, at that point you are Gollum hoarding the ring. A multibillionaire... Well... You have to either have quite the coin collection, or shake hands with the devil himself.

I am not opposed to anyone being rich. I am not ignorant to the market. I am not bitter. I am simply sad for these feverish people, who believe the bull they shovel. At least, I really hope they do, at least if they believe they are 'doing the right thing, ' then they are just ignorant. If they know it's bull, and they do it all anyways... Then they are evil.

What do you think?

More to come... (insert Johnny Carson segue music)

Company: Quicken Loans
Country: USA
State: Michigan
City: Livonia
Address: 1500 West 3rd St

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