{
  "docId": "019dd923-622c-750b-8b99-74af5c9e9edb",
  "docSlug": "de028a1085e6",
  "documentTitle": "Zillow Group, Inc. (Z)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-03-05 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 68,
  "pageCount": 103,
  "prevPage": 67,
  "nextPage": 69,
  "slideType": "testimonial",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "Uses yellow highlighting to emphasize key critical points within the quotes.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "quote_block"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-74af5c9e9edb/68",
  "deckHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb#slide-68",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Our conversations with real estate brokers suggest that Zillow Home Loans has never been competitive with incumbent options.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f42-76f3-adcb-68e69b7801e2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Our conversations with real estate brokers suggest that Zillow Home Loans has never been competitive with incumbent options. Our checks suggest real estate agents have preferred lenders they do most of their business with, and Zillow is unlikely to disrupt this network as it has been built on relationships that have existed for a very long time.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "54cd6815-8b47-42dc-9fb7-751cc69924e2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.96,
        "x": 0.02,
        "y": 0.67
      },
      "kind": "quote",
      "text": "I still feel at this point the local lenders run circles around them.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "298854b5-60c9-4a2c-99ea-84b65967b345",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.96,
        "x": 0.02,
        "y": 0.37
      },
      "kind": "quote",
      "text": "So still probably a little premature to tell what the actual conversion rate on that should be. I think everyone's kind of still figuring out what's the best way to facilitate that. At the end of the day, the consumer's always in control. We'll work with whoever the consumer wants. I think some of the friction points that came out immediately when Zillow launched ZHL, there was two, one, they didn't understand the importance of the personal relationship between the agent and the loan officer. I think they construed in their plan as insignificant, when in reality it's massively significant simply because you've got an agent that is going to invest tons of weekends, nights in doing tours, showings, getting people into property. Some buyers will look at 60, 70, 80 properties before they make a decision. It's labor intensive. It's heavy. And so the agent wants to know for sure that when we go through this process, assuming that the buyer needs a loan, which 90% of them do that, all of their work that they've put in is not going to get destroyed because the loan officer screws up the loan.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2d495734-1c49-42ca-ad2f-552a0eaacad3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.96,
        "x": 0.02,
        "y": 0.75
      },
      "kind": "quote",
      "text": "And there's a lot of nationwide outfits that promote themselves as rocket mortgage, push button get loan. That is not how it works. It'll be a long time before that actually is the reality. There's so many guidelines and buy boxes that have to be fed choices, that have to be made, timelines that have to be hit, that agents are just, they're super, super sensitive and super aware of who the loan officer is and the personal relationship in person, face-to-face, nose to nose relationship is of utmost importance. That's how a loan officer has built businesses is that relationship. And so I think when ZHL launched, they thought, well, we'll just do it from Seattle and we'll just have a bunch of loan officers, and as long as they're good on the phone, it'll be fine. And it's not fine at all.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b14620cf-03bc-4929-b857-31673dab4f2d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "I think some of the friction points that came out immediately when Zillow launched ZHL, there was two, one, they didn't understand the importance of the personal relationship between the agent and the loan officer. — Real Estate Agent",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f42-76f3-adcb-6d12b61a5062",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.2,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Spruce Point Research",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0888b183-26fd-4c1c-8098-a109974cce7e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.6,
        "x": 0.34,
        "y": 0.03
      },
      "kind": "title",
      "text": "Channel Checks Suggest Mortgage Business Was Never Competitive",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "764e5bfd-7d8a-47b8-8345-28b989a2e5ff",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 70,
      "from": 51,
      "beatId": "125707a2-c049-4259-b582-975f875ab5a3",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster",
      "beatSlug": null,
      "evidence": "The document presents the 'monster' of Zillow's flawed business model and poor management practices.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}