LendingTree - Online Mortgage Applications?!

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

Hi Im new to the mortgage game, so I have a lot to learn, however doing some research I found a company called LendingTree. Has anyone done business with them and how were they in terms of finding the best rate, good customer service and so forth?

Are there any other online lending programs that I can look into as well?

I also understand that they have a real estate program too.

Any thoughts or suggestions would be greatly appreciated.

chow · Posted: Sun Dec 17, 2006 10:43 am Post subject:

According to your blog- You're pretty cozy with them already. Why are you asking? :wink:

Business must be pretty slow over at Lending Tree if they are spamming mortgage boards now....... :lol:

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

Lending Tree, along with having their own mortgage banking outfit also sell their leads to as many as 4 brokers if they don't keep the lead themselves.

They claim a "CLO" fee when the lead they sold you closes. This "Computerized Loan Origination" fee is in addition to the cost of the lead. The CLO fee can be hundreds of dollars.

So not only are you paying twice for a closed loan lead, you are in competition with as many as 3 other folks all trying to make a profit as well as cover the CLO fee.

Seems to me that for the cost of a closed loan from LT you sure could do some powerful marketing elsewhere that would be more profitable to you and not create your own competition while doing it.

BTW, my knowledge of LT is not first hand knowledge, so if any of my info above is grossly incorrect, I offer my apologies in advance. One of the brokers I deal with uses LT leads and this is where my information comes from. LT leads work well for their business model.

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

Thank you for your humble opinion. I am looking to promote the best online affiliate program related to mortgages and I am honestly still new to the game, so if any experienced lenders out there could guide a newbie like me to the right path, I would be very appreciative!

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

Where did you get the word "humble" from?

I think it's a damned fine opinion myself.

I went to your blog and all I can say iS, DUDE! I never read the words L****** T**** so many times before in all my years combined.

Seriously, You are so involved with LT I bet leaves fly out every time you break wind

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

Haha thanks. I found their affiliate program on Commission Junction and they had the highest performance rating so that is why I chose them...

Any other thoughts?

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

So I guess your standpoint is in that of a Mortgage Broker looking for leads. Mine I guess is more in the quality of customer service and experience with the company and trust in the company to unload their information to trustworthy companies and people to do business with and help them find the BEST value for them.

Im not a mortgage broker, but my plan is to help people search online for a good online mortgage broker and help them advertise their products and services as well as educate myself and readers of my blog and websites to benefit those that stumble upon it.

If there are any other online mortgage lenders that offer an affiliate program that may be better than Lending Tree, I would love to know about it.

Hope everyone is having a great holiday season. Thanks!

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

You are competely wrong about my standpoint. I am not a broker at all. Not an L/O either.

My standpoint is as I stated earlier, that the cost per loan through your "affiliated" LT relationship can be drastically reduced by proper marketing rather than paying hundreds of dollars in CLO fees to LT.

Anytime a broker's cost per closed loan exceeds $350, it is time to re-evaluate the marketing strategy.

Tell me I'm wrong. Anybody.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: Im not a mortgage broker, but my plan is to help people search online for a good online mortgage broker and help them advertise their products and services as well as educate myself and readers of my blog and websites to benefit those that stumble upon it.

Quote: If there are any other online mortgage lenders that offer an affiliate program that may be better than Lending Tree, I would love to know about it.

Right.

I think you have made a mistake in the perception of this website. We're all professionals here, and most of us hang around here as a hobby. Some people have personal experience with various lead sources, and others do not. However the consumers best interest is what we strive for around here, and you're obviously missing the point that Mac has been trying to give you.

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

Thanks.

I think I have a better understanding now about what the purpose of what this website is for.

Mac, am I correct in saying that from your position, you are analyzing LT from a lead purchaser standpoint offering the knitty gritty details of the relationship between LT and Broker, in terms of fees and commissions?

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

I don't think you are correct in saying that at all.

I look at this from a managerial standpoint.

When the cost per closed loan gets to be excessive (over $350) and you are voluntarily signing up to be in competition with as many as 3 other brokers, I say it's time to re-think your business plan. I don't care who your lead provider is or what method you use.

Short version is this....

Don't pay a load of money to create your own competition.

When LT's CLO fee reaches $750 (and I have heard it could be as much as $1000) is the borrower really saving the money the adverts claim?
"When banks compete, you win!"

The only real winner is LT because the brokers are cutting their own throats to get this gem in the door. LT gets the CLO fee regardless which broker closes the loan. What a bargain huh? Don't forget that the lead was sold 4 times too.

I only wish I had thought of it first.

chow · Posted: Tue Dec 19, 2006 2:09 pm Post subject:

Mac wrote: I only wish I had thought of it first.

No you don't because Uncle Herman would have become top of the check book! :wink:

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

Thanks for clarifying that detail. I can understand that in order for Lending Tree to stay in business, that they need to charge some sort of fee for their service to find the best loaner for them.

However for the loaner who is short on time and living life to the fulest because they are already rich maybe this may be a good alternative for the time strapped person looking for a great loan, not really caring about $1000 in fees and willing to pay them because they are already a millionare/billionaire?

However the small guys, the individuals would definately be affected by the larger costs. But if a bigger company deals with this more consistently it can probably cut into their costs for sure.

Theres a market for everything right? As people have different needs and wants out there depending on their own situation, social, economic and financial standpoints.

m2c · Joined: 03 Aug 2005 Posts: 937

I’m still trying to figure out whether you’re “for real” for just a shill for LT. At various points you espouse altruism but then you promote your site and LT, LT, LT and then give your driving force with the site that must pay you to drive traffic to “affiliate” sites. They are certainly a legitimate lead providing site. I wouldn’t feel bad directing marks to them but don’t think you’re doing them any favors.

No problem – everyone deserves to make a living but I think you have the target market for LI “wrong”. Designed for the folks who don’t care if they’re charged more; just want an “easy” Internet format … or the truly naive. Folks I feel sorry for are the latter who get suck in by the tab line. Of course, we see only the “smart ones” who tell us “gee, I didn’t realize I was getting hammered”. Our response is along the lines of “well…duh!”

The business plan is just a reworking for the pre-Reg Z real estate agent “format” – “promise to give we one point or you don’t know ever the buyer’s first name”. Just pass on the extra cost and the buyer bails out through appreciation in home values. Many buyers/borrowers are more sophisticated now and the market is not flying as high but …. advertising “works”!

applyfor-mortgagesonline · Joined: 17 Dec 2006 Posts: 16

Yeah Im just giving them a try right now and seeing what kind of commissions I can earn if any by promoting their program. If not Ill probably look into selling the site and domain.

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