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Gilbert: 'We're not really in the mortgage business'

Quicken Loans has climbed to the top echelon of the mortgage business, claiming to top, for the first time, industry stalwart Wells Fargo & Co. in volume of mortgage originations in the fourth quarter of 2017. First-quarter 2018 mortgage origination data is not yet available, but Emerson suggested Tuesday that Quicken Loans would retain the top spot in the direct retail mortgage sector.

Without naming competitors, Gilbert said the ability to use a smartphone to make a major purchase like a home threatens the business model of legacy companies and industries.

"If they don't get on the train, it's going to be over," he said. "The writing's on the wall, right?"

In the future, Gilbert said, the only businesses that will survive are those that "keep up with the speed of the game," invest time and capital in new ideas and "let people fail."

"We're seeing it already," Gilbert said.

Emerson, who joined Gilbert's company in 1993, took out his iPhone and noted the smartphone has all of the functions of multiple machines "that Radio Shack would sell — clocks and phones and computers and calculators" to customers just a decade ago.

Radio Shack, which went through bankruptcy 2015 and shuttered nearly all of its stores a year ago, is an obsolete way to shop for the average first-time homebuyer who is 32 years old, Emerson said.

"They're not going to change the way that they purchase things, they're not going to change what they do with this little device," said Emerson, who spent 15 years as CEO of Quicken Loans until becoming vice chairman in February 2017. "If we don't, as an industry, embrace this, get our brains around it ... we're out of the game."

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