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"E-Loan Working With the Real Estate Pro "

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Joe Kennedy Photo
4/7/00 Interview with Joe Kennedy

E-Loan, Inc.
5875 Arnold Road
Dublin, CA 94568

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How E-Loan Works

  1. E-Loan offers the products of multiple lenders, assisting the consumer all the way through the loan process from application, to underwriting, to funding; once the loan is funded, it transfers to the appropriate mortgage lender.
  2. Consumers get access to a full range of mortgage products and lenders while benefiting from a consistent, streamlined process under the control of E-Loan; Realtors can also take advantage of the service.
Advantages for the Real Estate Practitioner

  1. The speed of underwriting (within 24 hours) lets both client and agent know where the borrower's credit stands right away. 2. Being able to choose from the best rates and best products means that the client can afford the most house possible.
  2. Visibility via E-Track and E-Track Pro on the web site, means both client and agent can determine the status of the mortgage process 24/7.
  3. The site is intended as a lending site to support the real estate practitioner and the borrower; most users come to E-Loan after they have selected a Realtor and identified a property.
  4. The "Find an Agent" section of the web site, however, is part of a reciprocal arrangement with REMAX.
Where Business Comes From

  1. The majority of business-70%-comes directly to E-Loan from offline advertising and word of mouth.
  2. Relationships with a number of key Internet sites (such as Yahoo!) also bring in business.
  3. Users are attracted by the variety of choices in one, convenient location and by the competitive cost; E-Loan's technology allows many more products and lenders to be presented than an individual broker can handle.
  4. The entire database (50,000 products) can be searched in half a second to find the best rate.
  5. As a consumer lender, E-Loan will handle mortgages for up to a four-family unit, but no commercial loans.
The Competition

  1. Primary competition comes from traditional mortgage brokers, who still get the vast majority of business; E-Loan offers more choice and lower fees-origination fee is about 0.5% vs. 1%-1.5% for traditional brokers.
  2. Other online mortgage services tend to be referral sites that take a consumer's data and shoot it off to a number of lenders; the borrower and the Realtor cannot be sure where the data will land or what process the consumer will be put through.
  3. Neither area of competition appears to be much of a long-term challenge.
Favorite Places on the Web

  1. For personal finances: and Yahoo Finance.
  2. In place of TV news and weather: and
  3. For sports news: PGA and
Email Efficiency Tip

Delete most unsolicited email without looking; Kennedy asks himself whether he would have cared if the message showed up in his in-box-if the answer is no, he doesn't read the message.

Real Estate-Mortgage Interplay

  1. The Realtor remains the quarterback of real estate transactions; that role becomes more difficult as consumers come to Realtors having done more homework; E-Loan can be an asset to Realtors as they deal with more Net-savvy clients.
  2. E-Loan attempts to support the Realtor as a strong lending partner; by moving quickly and keeping the Realtor informed, E-Loan removes uncertainty about the loan from the real estate equation.
  3. The development of E-Track Pro, which allows Realtors to monitor the status of their clients' loans, reflects the company's focus on supporting the Realtor.
  4. E-Loan is a lending specialist; Kennedy does not expect the site ever to be a portal for real estate business broadly; consumers' interest in the loan process tends to come after they have sought more general real estate information.
Features of My E-Loan

  1. When consumers open a My E-Loan account, they learn for free what their FICO credit score is; knowing their credit worthiness is an advantage for both consumers and Realtors.
  2. The service allows consumers to track debt products the way they track stocks, mutual funds and other assets; parameters for a specific loan product can be entered to generate a graph showing the best pricing on that product over time.
  3. The consumer can request to be notified by email when a target amount is reached.
  4. The goal of My E-Loan is to help people time transactions better and manage their overall debt better.
Industry Evolution

  1. Customers will become more Net-savvy and better informed; professionals will be challenged to add value in directing transactions and sorting through choices.
  2. E-Loan will continue to focus on streamlining an archaic mortgage process through the Internet so that less time will be spent on the loan and more time can be spent on other aspects of the real estate transaction.
Contact Information for Joe Kennedy:

(v) 925-241-2400
(f) 925-556-2178

Real Estate Sites & Tools in this Briefing:


For personal finances:
Yahoo! Finance

News and weather: