LendingTree Closes! (home loan, 2010, approve, credit)

[lorriem]

Originally Posted by TimNJtoCT

PHH Mortgage (does business as Century 21 Mortgage, Coldwell Banker Mortgage, ERA Mortgage, etc) is who I'd recommend. They are a top ten lender, they are not a broker, and they never got involved in sub prime like many of the other big lenders.

I'm sure there are others but I'd recommend sticking with large direct lenders.

We have used PHH for many years and before that Cendante that was bought out by PHH. I cannot say enough about them.Great customer service and fast approval and a stress free close.

[renriq02]

Ummmm why dont you tell that to my friends who got laid off today at noon????

99.9% were laid off...they pulled everyone into rooms and gave them severance packages.

Originally Posted by Spidey7477

The Charlotte branch did not close and neither did the California branch.

[renriq02]

Sounds like American Home Mortgage.....never did subprime...but they went bankrupty anyway.

The problem with a direct lender is if they go out of business then you will need to find another lender to do your loan.

I'm sure those 3,000+ ppl weren't happy when they found out they needed to find a new lender when AHM/ABC went out of business.

Can you imagine going to closing...and the attorney tells you that the lender has no funds?

I work with over 440 lenders...if one of them goes out of business..I'll find another lender for my borrower in seconds.

Countrywide is the largest direct lender in the United States...I'm sure everyone knows that their stocks were around 45 bucks..and came as low as 8dollars. We'll see if they go bankrupt next year...

Originally Posted by TimNJtoCT

PHH Mortgage (does business as Century 21 Mortgage, Coldwell Banker Mortgage, ERA Mortgage, etc) is who I'd recommend. They are a top ten lender, they are not a broker, and they never got involved in sub prime like many of the other big lenders.

I'm sure there are others but I'd recommend sticking with large direct lenders.

[TimNJtoCT]

Nothing like AHM. PHH is one of the top 10 and has a lower foreclosure rate than Countrywide. Brokers are middle men who add on to wholesale rates to make their money.

Bottom line... sometimes direct lenders have problems and some times brokers have problem... shop around... get it in writing... and go with a name you trust. If you never heard of the company... don't get your mortgage their. It's like buying a car... it's not just about price... it's about reputation.

Originally Posted by banker0679

Sounds like American Home Mortgage.....never did subprime...but they went bankrupty anyway.

The problem with a direct lender is if they go out of business then you will need to find another lender to do your loan.

I'm sure those 3,000+ ppl weren't happy when they found out they needed to find a new lender when AHM/ABC went out of business.

Can you imagine going to closing...and the attorney tells you that the lender has no funds?

I work with over 440 lenders...if one of them goes out of business..I'll find another lender for my borrower in seconds.

Countrywide is the largest direct lender in the United States...I'm sure everyone knows that their stocks were around 45 bucks..and came as low as 8dollars. We'll see if they go bankrupt next year...

[pghquest]

I just called lendingtree, and coincidently, someone from the Charlotte location answered the phone..

She stated that Lendingtree's corporate office was in Charlotte and she has heard absolutely nothing about the office closing.

I would assume that if 99.9% of the office was closing.. that the .1% left would be wondering where the rest of the office went and would be aware of any office closing or downsizing.

I looked for any news story on such action, only thing I seen only was forums from people who joined those forums after December 5th, 2007.

mmm, one of them being the indivual below from "North Carolina"

banker0679

Joined: 07 Dec 2007
Posts: 5
Location: North Carolina

[pghquest]

Ok.. Found the true facts..

The ownership investment group (IAC) of Lendingtree is spinning off Lendingtree, the HSN, and 3 other companies into its own corporate identity. They are not closing but being "sold off" by going public.

IAC to spin off LendingTree - Charlotte - Local Business News - Portfolio.com

IAC to spin off LendingTree

Nov 5 2007 10:08AM EST

LendingTree will become a publicly traded company as corporate parent IAC/InterActiveCorp splits itself into five businesses.
Along with its spinoff of Charlotte-based LendingTree, IAC will turn its HSN home shopping network, Ticketmaster ticket service and Interval International time-share business into separate, publicly traded operations.
IAC will retain its media and advertising segment, which includes Match.com, Evite, Shoebuy.com, Citysearch and Entertainment Publications.
"One of the reasons we've stayed with some of our more transactional businesses is that we needed their earnings to allow us to invest in emerging Internet businesses," says Barry Diller, chief executive of New York-based IAC. "Now that we have real scale in the pure Internet units, it makes nothing but sense to me to reorganize the whole."
Under the revamped structure, C.D. Davies will remain chief executive of LendingTree.
Last week, LendingTree reported it had swung to a $5.6 million operating-income loss in the third quarter. In the same time last year, the company's operating income totaled $15.2 million.
Revenue at LendingTree, an online lending and realty-services exchange, fell 41 percent to $63 million from $106 million in the year-ago period.
According to IAC (NASDAQ:IACI), sales dropped primarily because of a decline in loans sold to the secondary market, lower revenue per loan sold and the closing of fewer loans.
Profits were also affected by an $8.2 million provision for loan losses in the latest quarter, compared with $700,000 in the year-ago period.
The higher provision reflects the increased losses the company is experiencing with respect to loans sold, IAC says.
"LendingTree, obviously under pressure from the macro real estate and mortgage environment, is nevertheless a valuable asset with a great brand and will be freed to participate fully with its own currency," Diller said in a press release Monday.
LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loans.
The spinoffs are to be completed in the second or third quarter.
IAC's shareholders will own 100 percent of the equity in all five companies.

[renriq02]

Ok....I used to work at LTL....a lot of ppl know me here from me doing their loans. I have no reason to lie.

I have been on this forum for some time now...and have also been on other forums for a while.

Your phone calls are probably being transferred to California.....or maybe the person who is answering the phone in Charlotte is lying.

The Charlotte branch was laid off ...and they all went to Fox & Hound afterwards. I know at least 3managers that aren't working there any longer.

[renriq02]

AMH was one of the top 10 as well.

I worked at BofA and LTL....their rates are a lot higher than most brokers.

For Example.

Countrywide may offer a rate of 6.25%, and a broker may offer the same loan with CW with a rate of 6.00%. You have stated the answer already....brokers receive 'wholesale' rates. The brokers may charge less and still make money on the loan. Brokers dont have huge overheads like CW does....they dont need to pay for employees, health insurance, 401k, TV Commercials, online ads, etc.


Over 70% over the mortgages done in the US are done by mortgage brokers.

Like I mentioned this in another post......Facts dont lie...

According to an intensive study by Georgetown University professor Dr. Gregory Elliehausen of over 500,000 mortgages - pricing by MORTGAGE BROKERS was less than pricing by DIRECT LENDERS. "The study found the APR (annual percentage rate) on broker-originated first mortgages were 1.13 percentage points less than loans originated by lenders, and 1.98 percentage points lower on second mortgages."

http://www.paylessmortgage.com/files...agotribune.pdf


Facts matter....borrowers are tired of hearing about myths.

Another point.....
Companies like Taylor Bean Whitaker..offer one of the best rates in the industry BUT they're not open to the public. They offer their products to brokers. They are one of the many lenders that use brokers to promote their products.

Originally Posted by TimNJtoCT

Nothing like AHM. PHH is one of the top 10 and has a lower foreclosure rate than Countrywide. Brokers are middle men who add on to wholesale rates to make their money.

Bottom line... sometimes direct lenders have problems and some times brokers have problem... shop around... get it in writing... and go with a name you trust. If you never heard of the company... don't get your mortgage their. It's like buying a car... it's not just about price... it's about reputation.

[TimNJtoCT]

Again, I encourage customers to shop. Statistics and facts don't lie. But service matters to most clients also.

Every customer should call a minimum of 3 lenders. Over half only call 1.

[lorriem]

Originally Posted by TimNJtoCT

Again, I encourage customers to shop. Statistics and facts don't lie. But service matters to most clients also.

Every customer should call a minimum of 3 lenders. Over half only call 1.

We are over the half that only calls one but we always get a great interest rate plus pay .2point which to me is great since I hear of people having to pay 1 or two points.This was our first time with a lawyer doing the closing since we have always used title co's and the paralegal was taking her own sweet time PHH called her twice after we and our realtor called and they got her moving. Little things like that is why I go with only them. They have never let us down.This time even though they know we have not sold our FL home they said they would not give us a swing loan until we got a solid contract which we have not but from what I hear they did us a favor since a swing loan does have extra charges.