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Prime borrowers may soon feel pain The Charlotte Observer Amy Baldwin Dec 30, 2007
Homeowners with good credit -- those with prime mortgages -- haven't necessarily escaped the mortgage nightmare that has been playing out among subprime borrowers and lenders across the U.S. A broader swath of homeowners will find in 2008 that they can't afford their monthly payments, will have a hard time refinancing or both, mortgage experts say. ..."Lenders are looking for reasons why a loan should be turned down. They are being a lot more stringent on who they will make exceptions to," Kyle Kilpatrick, former executive vice president at online broker LendingTree, told MoneyWise earlier this year.
Paying points to trim rate only works if you stay put The Baltimore Sun Jamie Smith Hopkins Dec 21, 2007 If you've paid a bit of attention to mortgage jargon, you might have the same question a colleague put to me: What the heck is a point? It's an upfront fee to get a lower interest rate. The more discount points you pay for, the lower the rate - but don't assume it's worth it. Allison Vail with LendingTree, the online company that connects borrowers with lenders, says you need to figure out if time is on your side. She notes that paying for one discount point typically means coughing up money equal to 1 percent of the amount you're borrowing in return for a quarter-percentage-point off the rate. "...if you plan on being there for a long time, that's great, because you're going to have an interest-rate savings over the life of the loan," Vail said. "But if you plan on leaving, discount points may not be a good option."
All in the Family The Wall Street Journal Shelly Banjo Dec 17, 2007
You've spent years investing in your children's future by providing them with a good education, a comfortable home and cash along the way. But what happens when your kids ask for a different kind of investment, say, in their new business?...To keep both finances and the relationship with your child intact it is important to do your homework, says Nicole Hall, editor-in-chief of the Smart Borrower Center at the Charlotte, N.C.-based Web site, Lendingtree.com LLC. Although it's not necessary to initially involve a lawyer, consult a financial adviser or tax expert to make sure you are not jeopardizing current living or retirement plans. "Only loan what you can afford to lose," Ms. Hall says. Also, keep your commitments to other children and their future endeavors in mind.
Auto Leasing Losing Appeal TheStreet.com Christopher Stahl Dec 12, 2007
Leasing has become a way of life for many Americans. In the early 1990s, one in 10 new cars that left the dealer lot were leased, according to Lendingtree.com. By last year, the number had increased to one in five. ...If you do opt to lease, don't begin by negotiating the monthly cost of the lease, says Allison Vail of Lendingtree.com. Instead, start the bargaining over the price of the car. Bringing that down will bring your monthly payments down. In fact, you probably shouldn't even tell the dealer you plan to lease until you've agreed on a price, she says.
Do-It-Yourself Mortgages US News & World Report Kimberly Palmer Nov 30, 2007
By age 30, Seattle-based freelance writer Jane Hodges was ready to buy a home. But because she was self-employed, she learned that she needed at least two full years of self-employment before lenders would consider her for a mortgage.
...The other option for the self-employed—a loan with full documentation of income—usually requires at least one year's worth of tax returns, and sometimes two, says Allison Vail, spokeswoman for LendingTree.com. But she doesn't recommend sitting around and waiting. Vail says future borrowers should check their credit score, which will affect their interest rate, and, if necessary, improve it by paying down debt and making on-time monthly payments. Keeping detailed financial records will also help when it's time to work with a lender.
Spin off ahead for loan Web site The Charlotte Observer Rick Rothacker Nov 05, 2007 In a dramatic remaking of media mogul Barry Diller's Internet conglomerate, Charlotte-based LendingTree is set to become an independent company again. New York-based IAC/Interactive Corp. on Monday said it planned to sping off four companies to focus on core Web businesses such as Ask.com and Evite. LendingTree, an online loan matchmaker and lender, goes out on its own. Founded in 1996, LendingTree followed the dot-com playbook of going public in 2000 before being acquired by IAC in 2003 for about $700 million. Now it's set to become its own publicly traded company again. ...In a conference call, Diller expressed confidence in LendingTree's future..."It has a great brand name, and it will come out of this having gained share," he said. "An awful lot of (mortgage companies) won't be there. LendingTree will be."
Mortgage Rate Trend Index Bankrate.com Nov 01, 2007
Will rates fall or remain relatively unchanged? Experts and Bankrate analysts provide their insights.
...With continued weakness in the housing market, a rate decrease priced into the market and a still very choppy mortgage market, we should see downward pressure on mortgage rates. The good news is that prime jumbo mortgages are slowly, but surely, coming back into the market, providing relief to both borrowers and lenders. - Jim Svinth, chief economist, LendingTree Loans, Charlotte, N.C.
House-Hunting While Self Employed US News & World Report Kimberly Palmer Oct 25, 2007 ..When it comes to taking out a mortgage, self-employed people face obstacles that their cubicle-contained neighbors do not. ...So lenders often charge a premium to entrepreneurs. You do have options, though, and waiting a year my not be the best one. One popular move for self-employed home buyers is to take out a "stated income loan," which is based on how much you say your income is instead of how much you can prove it is. ...LendingTree's Allison Vail says even with stated income loans, some lenders require that the borrower have worked out of one location for at least two years. The other option for the self-employed - a regular loan with full documentation of income - usually requires at least one year's tax returns, Vail says, and in some cases two years. But that doesn't mean you should sit around and wait. Vail recommends checking your credit score, which will affect your interest rate, and keeping good financing records so you are ready when it's time to apply for the loan.
How Much Home Can You Afford? Cyberhomes.com Nicole Lerner Oct 24, 2007
So you’re finally ready to buy a home. Before getting starry-eyed house hunting, don’t forget that buying a home is a long-term financial commitment, accompanied by closing costs, mortgage payments, taxes and day-to-day maintenance.
How can you determine how much buying power you have?
Every first-time home buyer should follow three easy steps to determine how much home he or she can afford, says Nicole Hall, Editor-in-Chief of LendingTree.com’s Smart Borrower Center. The first step, she says, is to get pre-approved by a lender. The lender will look at your income, debt, credit history, and savings to determine how much of a loan is in your borrowing ballpark.
How to Dodge Fees When Buying a Home US News & World Report Kimberly Palmer Oct 12, 2007 ...Unfortunately first time home buyers are often surprised with fees, insurance, taxes and other costs. But it doesn't have to be that way. "We try to help people get better prepared for the closing," says Allison Vail, spokeswoman for LendingTree. ...But she says that with a tightening credit market, lending is rapidly changing. "It's important for people to know that we're in a different world now," she says. People without excellent credit scores may find rates going up and certain loan prodcuts no longer available she notes. ...LendingTree offers an array of calculators to help you decide whether to rent or buy and to compare loans. The site also explains confusing mortgage terms.
Longing for this second home? The Charlotte Observer Amy Baldwin Oct 07, 2007 The air is turning cooler, and soon leaf peepers will head to the N.C. mountains to gasp at the beautiful red and gold-speckled views. Developers know this is when people dream of owning a little slice of high-altitude heaven, so they ramp up advertising or start up new sales campaigns. If you are fantasizing or are in the market for a mountain or foothills retreat, here are some tips....You have three mortgage options, said Allison Vail, spokeswoman for Charlotte-based LendingTree. Get a home equity loan on your primary mortgage, get a new first mortgage on your mountain home or refinance your existing mortgage and cash out. Best bet? "We would recommend a buyer stick with getting a new purchase mortgage loan on their second home," Vail said. "Unless a buyer has a large amount of equity in their existing residence...a new mortgage for a secnd home is likely going to be the better deal."
Home finance - making sense of mortgages Alaska Airlines Magazine Matt Villano Oct 01, 2007 ...Perhaps the biggest surprise about mortgages for first-time homebuyers is the costs associated to close the loans. In most cases, these expenses add up to between 3 percent and 6 percent of the home purchase price, and are laid out in what's known as a good faith estimate (GFE). All lenders are required to break down fees for borrowers in this fashion. According to Kyle Kilpatrick, executive vice president of LendingTree.com, a service that matches borrowers with lenders, every GFE should include a standard set of costs. ..."When you see the good faith estimate, you get a good sense of how much work goes into each and every on of these loans," Kilpatrick says, adding that in some states, attorney fees also may be part of the GFE if the state requires that attorneys get involved. "This is by no means an easy or straightforward process."
With Economy Volatile, Financial Firms Start to Stress Stability The New York Times Stuart Elliott Sep 19, 2007 IN recent years, LendingTree, the mortgage Web site operator, prospered with upbeat advertising that confidently told potential homeowners, “When banks compete, you win.” But last week, that campaign vanished, replaced with sober, straightforward ads that seek to educate consumers about “smart borrowing.”...The goal is to communicate to consumers that LendingTree realizes “the landscape for lending has changed considerably,” said C. D. Davies, chief executive at LendingTree, part of IAC/InterActiveCorp. LendingTree added a feature to its Web site in 2004 called the Smart Borrower Center, Mr. Davies said, and made it the subject of ads that ran in some magazines as recently as July.
Home loan demand up as interest rates tumble Reuters Julie Haviv Sep 12, 2007 Mortgage applications rose for a second straight week as interest rates sank to their lowest since May, data from an industry trade group showed on Wednesday. ...Jim Svinth, chief economist at LendingTree.com, an online company that matches consumers with lenders, said lower interest rates made borrowers evaluate their mortgages and options after the Labor Day holiday. "With today's low interest rates, prime borrowers are realizing they are in the driver's seat and can take action on finding great home loans that match their needs," he said. "With the Fed meeting next week, I feel we'll continue to see more of this type of activity as all signs are pointing to a rate drop on Tuesday. We'll have to wait and see if these predictions indeed come true," said Svinth, who is based in Irvine, California.
Mortgage lender aims to educate borrowers The Charlotte Observer Rick Rothacker Sep 12, 2007 With the mortgage market a mess, Charlotte-based LendingTree wants to give befuddled borrowers a hand. Known for witty commercials spoofing bankers and in-debt consumers, the online mortgage marketplace is launching a national advertising campaign this week with a more serious tone. The gist is that borrowers need to get better educated about the industry's turbulent times. In TV, print and online ads, the unit of New York-based Internet conglomerate IAC/InterActiveCorp is pointing borrowers to its "Smart Borrower Center," a Web page packed with tips and other features.
Ahead of the yield curve MarketWatch Chuck Jaffe Sep 04, 2007 It's not a foregone conclusion that the Federal Reserve will cut interest rates when it meets in mid-September, but consumers might want to bank on the move anyway. If you're a saver, a rate cut may not be an event to sing about, and could require immediate action. For borrowers, particularly the millions of homeowners facing a rate reset on their adjustable-rate mortgage, it could be very good news. ..."If you're a quality borrower, you're kind of calling the shots right now," LendingTree Chief Economist Jim Svinth says. "If you have a FICO score above 700, if you are willing to put down 20% and you will document your income, then you have a lot of options."
Real-Life Money: Funding a Renovation Metropolitan Julie Connelly Sep 01, 2007 Is this the year you renovate your house? If so, "there are a lot of good financing options for you, and you want to look at all of them," says Kyle Kilpatrick at LendingTree.com, the online lending exchange that lets borrowers compare loan terms and rates. First figure out how much you need, then build in a 10 percent cushion for unforeseen expenses. Here are the most popular borrowing options: personal loan or line of credit; home equity loan; home equity line of credit; cash-out refinancing; and a construction loan.
Home-equity loans tougher to get USA Today Sandra Block Aug 28, 2007 Back when the real estate market was flying at 30,000 feet, getting a home-equity line of credit was a pretty straightforward process. You called a toll-free number, asked for a loan, and within hours, a guy with a suitcase full of money showed up at your door. It's a lot harder now. ...Now, "People with lower credit scores are definitely going to have a harder time finding financing than they had in the past," says Kyle Kilpatrick, executive vice president for LendingTree, a website that helps consumers shop for loans. Though credit standards vary, borrowers with credit scores of 700 or higher will find the best deals on home-equity loans and lines of credit, Kilpatrick says.
Your $$$$$ CNN Christine Romans and Ali Velshi Aug 18, 2007 LendingTree CEO C.D. Davies provided viewers helpful advice for those looking for a home loan in today's mortgage market. Tips included: 1) Check your credit report and score (those with a score of 720+ are in a great position to get a competitive deal); 2) Make sure you have a down payment saved; 3) Have the ability to document your income and assets. These three factors combined will help a borrower get the most competitive loan in today's market.
A Loan in Search of a Market The New York Times Bob Tedeschi Aug 12, 2007 IN the last decade, mortgage borrowers have been able to choose from a fast-growing array of loans. But now that investors have soured on mortgages, that situation has changed. A case in point is the 50-year fixed-rate mortgage, which some lenders began offering last year as a way for borrowers to secure lower monthly payments without exposing themselves to the risk of interest rate increases associated with adjustable-rate loans. ...''The 50-year mortgages had some sizzle because they were new, but when you pull back the covers, you could see it wasn't that great of a product,'' said Jim Svinth, the chief economist at Lending Tree, an online lending site owned by InterActiveCorp.
How to defuse a ticking home loan MSN Money Liz Pulliam Weston Jul 26, 2007 ...Know where you stand - Dust off your mortgage documents, advises LendingTree.com chief economist Jim Svinth, and scour them for important information, such as: When your payment is scheduled to adjust; What benchmarket the payment will be based upon (such as the LIBOR rate or the one-year Treasury); What your margin is (this is what is added to the benchmark to determine your new rate); What your caps are (many adjustable loans typically can increase no more than 2 percentage points in a year and 6 percentage points over the life of the loan, but check your documents to be sure).
CEO riding out mortgage mayhem The Charlotte Observer Rick Rothacker Jul 13, 2007 In May, C.D. Davies became chief executive of Charlotte-based LendingTree at one of the mortgage Web site's most difficult times. Former CEO Tom Reddin had resigned unexpectedly. The mortgage business was mired in a slump. ...Despite the turmoil, the former Wachovia Corp. mortgage head says he's having fun leading an outfit imbued with the entreprenerial spirit of founder Doug Lebda. The company is profitable, he said, and is striving to build its home-purchase mortgage business to offset a decline in refinancings. ..."I think our brand means competition, and it means empowerment to borrowers," the 42-year-old Ohio native said. "And there's probably no time more than now that they need that."
If you lack local connections, referral service can fill gap The Charlotte Observer Leigh Dyer Jul 07, 2007 ...Personally, I have used the referral service at Charlotte-based LendingTree.com. It rewards you with a gift card equal to a percentage of the purchase price of your home if you use an agent they refer you to. I did, and I found it a valuable perk.
On the House - Housing and retail markets entwined The Philadelphia Inquirer Al Heavens Jul 01, 2007 ...After almost a decade of "spend, spend, spend," Americans are admitting they are uncomfortable with the total amount of household debt they have accumulated. A survey by LendingTree of 1,499 consumers found that more than half don't have a financial plan, which means they don't know how they'll manage the debt they've accumulated, let alone pay it off. Not including mortgage debt, 74 percent of those surveyed believe they will be debt-free sometime in their lives. "This is great news," said LendingTree's Bridget Smith, "but based on what we learned from survey respondents, we're unsure how many will stop being slaves to debt payments and make changes to their lifestyles."
Online calculator can help you make loan choices MarketWatch.com Chuck Jaffe Jul 01, 2007 ...The "loan calculator" section at www.lendingtree.com includes a calculator that allows a consumer to compare the two types of loans to decide which deal is the best for them, based on current terms and conditions. You can do the comparison by going to www.lendingtree.com/smartborrower/calculators.aspx.
Offshore bank work on the rise The Charlotte Observer Rick Rothaker Jul 01, 2007 ...Charlotte based LendingTree, an online mortgage Web site, continues to maintain its call center in its hometown. "Borrowing money for a home or a car can sometimes be a complicated process and therefore, we can't risk the potential language barrier an overseas operation may create," Drew Jones, senior vice president, LendingTree.com said in a statement. "The Charlotte region provides us a great, cost effective talent pool that allows our operation to run 24 hours a day, 7 days a week."
Options for financing a home purchase The Washington Post Kenneth Harney Jun 29, 2007 ...Back-to-the-future sellers and buyers should also be looking closely at still another time-tested technique - rate buydowns. Jim Svinth, chief economist of LendingTree.com, says his firm is seeing a rise in transactions where sellers subsidize the rate on their buyers' mortgages for the first two to three years in exchange for an upfront payment by the seller to the lender. ...Svinth says that heads-up sellers - and their realty agents - should consider advertising the availability of buydowns to bring in purchases. "It's a very effective tool, and just about any lender can arrange it."
Fed not convinced inflation has been whipped MarketWatch.com Greg Robb Jun 28, 2007 ...Jim Svinth, chief economist at LendingTree, said the Fed will probably have to cut rates to support the faltering housing market. Svinth said he didn't think, the housing market had hit bottom and the market would be vulnerable to further weakness if many subprime mortgage borrowers default over the next year. "Maybe I'm too close but I see the mortgage market and the housing market on a daily basis. We're not seeing the inventory numbers come down," Svinth said.
1st home: Avoid borrow sorrow The Charlotte Observer Amy Baldwin Jun 24, 2007 ...Starting this year, PMI may be tax deductible. Here's what LendingTree's Web site says about that: "If you and your spouse file a joint tax return and have adjusted gross income (AGI) of no more than $100,000 or if you file an individual tax return and have AGI of no more than $50,000, you may be able to deduct 100 percent of the PMI you paid in 2007. You'll need to itemize your tax deductions to take advantage of this benefit.
Quick takes on the world of work and money Christian Science Monitor Robert Kilborn Jun 11, 2007 Except for what they owe on their mortgages, three-quarters of Americans age 19 and older say they can envision being debt-free at some point, according to results of a survey by loan-provider LendingTree. But 48 percent of respondents said they're "uncomfortable" with their current debt level and, alarmingly, 54 percent admitted to having no definitive strategy for managing it.
US home loan demand falls first time in four weeks Reuters Julie Haviv May 16, 2007 U.S. mortgage applications fell for the first time in four weeks last week, weighed down by sagging demand for home purchase loans, an industry group said on Wednesday. ...Jim Svinth, chief economist at LendingTree.com, an online company that matches consumers with lenders, said the numbers are showing an unbalanced ground for the housing market. "The good news is, rates remain low and buying a home is a solid investment," he said. "What the future holds for the market remains unknown but all in all, housing needs to be viewed as a long-term investment."
Don't let your ARM break you MarketWatch.com Jennifer Openshaw Apr 24, 2007 You went a little large with that 2005 home purchase. It felt good. You bit off a lot in the form of a large adjustable-rate mortgage to get there, but you made it happen. The low 3.75% intro rate really helped. You knew it would eventually go higher, but hey -- home prices would go higher, and so would your income. The problem is, it didn't happen. Well, your income did rise, but so did your expenses: higher energy costs, growing family, rising taxes. Now about those home prices -- you know the rest of that story. Now what? The honeymoon is about to end, and you're bracing yourself and your family for the inevitable. Your mortgage payment is about to go up, maybe by hundreds of dollars. And now is not a good time to join the stampede of foreclosures, preforeclosures, short sales and other forms of dire and unintended consequences. What do you do? ...Prepare by fixing your credit, shopping at places like LendingTree.com and keep in mind that the percentage of fixed-rate applications being rejected is on the rise.
Incentives help to seal deal Chicago Tribune Marilyn Kennedy Melia Apr 22, 2007 These days, determined sellers aren't concerned with just curb appeal. They're also trying to spruce up a buyer's financing package. Area lenders and real estate agents say it's increasingly common for sellers to pay a buyer's closing costs or provide upfront cash to lower the interest rate on their mortgage. ...With one strategy, the temporary buydown, a borrower can pay 2 percent less than the going rate the first year and 1 percent less the next, with the full rate charge kicking in the third year. The seller pays the difference in interest charges those first two years in an upfront fee. A lender can qualify the buyer at the lower first-year rate, says Jim Svinth, chief economist of LendingTree.com. But borrowers should consider how affordable their payment will be that third year, he adds.
When It Makes Sense to Pay PMI The Wall Street Journal Terri Cullen Apr 19, 2007 My sister Melissa and her husband Joe have finally pulled the trigger and made an offer to buy a house, after years of struggling to find something affordable near my Jersey Shore town. ...So the couple is considering two options. One would be to take out a traditional 30-year fixed-rate mortgage for 95% of the cost of the home and pay the remaining 5% out of their savings. Because they'd be financing more than 80% of the home price, they'd be required to pay private mortgage insurance (PMI) -- coverage that protects a lender in the event the homeowner defaults on the loan. ...With a piggyback mortgage, the only way to lower the monthly payment is to pay off the second loan or to refinance when mortgage rates fall. Refinancing costs average between 3% and 6% of the outstanding principal, with the highest rate being paid by homeowners with bad credit, according to loan-quote Web site LendingTree.com.
Websites try to make mortgage consumers a little smarter USA Today Christina Dugas Apr 10, 2007 At a time when many families are losing their homes to foreclosure, mortgage experts are offering new tools to help home buyers avoid making the same mistakes. One new website will let buyers search for the lowest mortgage rates without providing their names or talking to lenders. Another site has added a tool to gauge the risks of adjustable-rate mortgages. And an industry trade group is offering consumers some basic guidance for obtaining a mortgage. ...The increase in adjustable-rate mortgages has prompted LendingTree, which helps consumers shop for loans, to launch ARM Central on its website. The service will offer information about what happens when ARM rates are "reset." More than $1.5 trillion of ARMs will reset before the end of the year, says the Mortgage Bankers Association. That means that an interest rate that originated in 2003 for 4% could rise to 7.5%, LendingTree says.
Lenders, consumer groups reach out to ARM borrowers Reuters Patrick Rucker Apr 05, 2007 As many U.S. homeowners face ballooning mortgage payments, the lending industry and consumer groups are shepherding troubled borrowers into new loan terms or payments they can afford. ...The new ARM site from LendingTree shows borrowers how their now-affordable mortgage could jump nearly 50 percent in some cases once the initial 'teaser' interest rate expires. The site also offers to help borrowers find new, more affordable financing. "This is a place where (ARM borrowers) can find out what their options are," said LendingTree spokeswoman, Allison Vail. (The site can be found at www.lendingtree.com/arm)
Foreclosure hurts long after home's gone, so cut a deal while you can USA Today Sandra Block Mar 23, 2007 If you're lying awake at night, fretting about whether you'll lose your house to foreclosure, you may not be the only insomniac on your block. More than 2.1 million Americans with home loans missed at least one payment last year, according to the Mortgage Bankers Association. Even more troubling, the rate of new foreclosures hit a record. ...If you're suffering a temporary financial setback, your lender may offer programs that will help you get back on track. They include: Forbearance. This is an agreement that lets borrowers make a reduced payment, or none, for a specific period. You might have to make larger payments once the crisis has passed. To qualify, you might need to show that you're expecting a bonus, a tax refund or other income that will let you catch up. ...Before asking for forbearance or loan modification, be prepared to show that you are making a good-faith effort to pay your mortgage, says Jim Svinth, chief economist for LendingTree.com, a website that helps consumers shop for mortgages. If you can demonstrate that you've reduced other expenses, the lender will be more inclined to negotiate, he says.
Drive to make deals fuels mortgage woes Bankrate.com Holden Lewis Mar 15, 2007 The nonprime mortgage business is in a mess because during the boom years, hardly anyone had an incentive to say no... . Subprime and Alt-A lenders became more reckless in their lending decisions in an intensely competitive market. Lots of new borrowers fell behind on their house payments within just two or three months. Rather than lose money on the inevitable foreclosures resulting from these "early payment defaults," investors forced lenders to buy back hundreds of millions of dollars in bad loans. "That's behind the carnage we see now," says Jim Svinth, chief economist for LendingTree.com. More than 20 subprime lenders have gone out of business or declared bankruptcy since December because they didn't have enough cash to buy back bad loans... . The pendulum "will swing back to some sort of equilibrium over the next six to 18 months," says Svinth, of LendingTree. As far as seeking to find someone to blame for the nonprime mortgage debacle, Svinth says hindsight is clear. "It's awfully crowded on the moral high ground right now," he says.
LendingTree expands online offering Charlotte Business Journal Mar 12, 2007 LendingTree has expanded its online exchange to include a Web site that connects consumers to high-yield savings accounts. ... The LendingTree High-Yield Savings Marketplace, at www.lendingtree.com/savings, can be used to find savings rates for both certificates of deposit and money-market accounts.
Subprime fixes come too late, some say Orange County Register Mathew Padilla Mar 11, 2007 Is it too late for the federal government to fix the subprime problem? Homeowners with the higher-risk, higher-interest-rate loans are missing payments at the fastest pace in at least seven years. And companies - including several that call Orange County home - making the loans are going bankrupt, being sold or shutting down on an almost daily basis. The crisis leads some experts to wonder why the government didn't act sooner. "That horse has left the barn," said Jim Svinth, chief economist in the Irvine office of LendingTree. The Federal Reserve should have acted three years ago, he said. Indeed, last year, lenders issued about $600 billion in subprime loans, and many of those are going sour amid flat or falling home prices. At this point, Svinth said, it's doubtful new regulation is needed, although a discussion on the need for tighter loan underwriting is welcome. "I think the market is relatively self-regulating," he said. "You can see it right now. The subprime market is punishing itself."
The LendingTree television commercial The Today Show Mar 09, 2007 The LendingTree television commercial featuring Mr. Stanley Johnson - who is "in debt up to his eyeballs" - was included in a segment about American credit card debt.
The LendingTree television commercial CNN Paula Zahn Now Mar 07, 2007 The LendingTree television commercial featuring Mr. Stanley Johnson - who is "in debt up to his eyeballs" - was included in a segment about American credit card debt.
U.S. home loan refinancing surges as rates plunge Reuters Julie Haviv Mar 07, 2007 U.S. mortgage applications jumped last week as borrowers emerged in droves to refinance existing home loans as interest rates fell to their lowest level since early December, an industry trade group said on Wednesday. ... Jim Svinth, chief economist at LendingTree.com, an online company that matches consumers with lenders, said the drop in interest rates was viewed by consumers as a great time to refinance into a better mortgage product from existing ones. "This refinance boomlet is a nice sign for the housing market," he said. "We are currently in the midst of a liquidity crunch in certain sectors of the market but clearly there are opportunities to be had for homeowners to get a great deal on a loan," said Svinth, who is based in Irvine, California.
Lenders tighten standards on subprime customers Bankrate.com Holden Lewis Mar 01, 2007 Mortgage lenders are tightening standards for loans to the 15 percent of potential borrowers who have the worst credit... . Lenders haven't only tightened standards. They have boosted rates. Rates on the most popular type of subprime loan, called a 2/28 mortgage, have gone up about 1.5 percentage points to 2 percentage points since mid-January, says Jim Svinth, chief economist for LendingTree.com. That rise is purely a reflection of credit risk. ... Svinth says one type of subprime customer could end up in big trouble: "If you were a 2/28 borrower a couple of years ago, and you can't document your income and don't have enough equity to put 10 percent down, and your credit hasn't got any better, you're in a bad spot," he says.
A busy signal on these shores The Charlotte Observer Stella Hopkins Feb 28, 2007 At least seven companies are vying to hire Charlotte call center workers about to be laid off - welcome evidence of strength in an industry employing about 12,000 people in the city. Cigna HealthCare said this month that it would close its call center and claim operations, laying off 315 people by June. That comes as more customers go online for claims and other information. Within days, other Charlotte centers were calling Cigna eager to consider the workers for positions. "I would bet, assuming they're good performers, that everyone would love to hire them," said Drew Jones, who manages call centers for Charlotte online loan matchmaker LendingTree. "I understand we were reaching out to Cigna."
More employers recruit the military work ethic USA Today Barbara Hagenbaugh Feb 16, 2007 Employers looking to hire workers with strong work ethic, leadership skills and diverse backgrounds are increasingly turning to a select group of recruits: members of the military. ... Other companies are boosting their military recruiting efforts or even launching military hiring programs for the first time. LendingTree this month will attend a career fair at Shaw Air Force Base in South Carolina, the first time the online lender will go to a military job fair. Recruiters from the J. Paul Getty Museum in Los Angeles recently went to a military job fair to try to find security guards.
Cashing Out MarketWatch.com Amy Hoak Jan 21, 2007 People looking to extract equity from their homes have increasingly been turning to cash-out refinancing, industry observers say. A big reason that people are tapping their equity through refinancing comes down to dollars and cents, according to Amy Crews Cutts, deputy chief economist with Freddie Mac. Because home-equity loans and lines of credit are most often tied to the prime rate, now at 8.25%, those options have gotten more expensive even as long-term mortgage rates have remained relatively low, with the 30-year loan averaging about 6.2%. ... So is refinancing to take cash out everyone's best bet? Hardly. It depends on an individual, said Jim Svinth, chief economist for LendingTree.com. "I always counsel folks to look at all of their alternatives," he said. "If you refinanced two years ago and you have a 4.5% or 4.75% (rate) on the first mortgage, you're not going to want to refinance in today's environment," he said. Of course, if the spread between the mortgage rate you have and the one you can get isn't as big -- or if you can refinance to a better rate -- it may be a decent option.
Debt Today - Managing life's unexpected expenses CNN.com Special Report Jan 18, 2007
LendingTree Smart Borrower Editor-in-Chief Bridget Smith contributes advice to a special report about Americans living with debt.
Car accident/car repairs:An automobile can often cause an unexpected financial strain on your budget. Wrecks or repairs can cost you out-of-pocket expenses such as insurance deductibles, medical expenses, higher insurance premiums and costs for alternate transportation.
"If you can't make all of your payments, call your lenders and explain your situation," says Bridget Smith, editor in chief of the LendingTree.com Smart Borrower Center. "They don't want to lose money, so if you have a true emergency such as unexpected medical expenses from a car accident, they will work with you on a revised payment schedule."
Your lender doesn't want your house MSNMoney.com Liz Pulliam Weston Jan 15, 2007 If you're in danger of falling behind on your mortgage, or if you're already late, you may be skeptical about your lender's willingness to help... . It's no wonder many people become convinced their lenders are more interested in taking back their homes than in helping borrowers to keep them. So I'm here to tell you, with the help of experts who know the mortgage-lending business, that your skepticism is almost certainly unfounded. To put it succinctly: "The last thing the lender wants is your house," said Jim Svinth, the chief economist for LendingTree.com, an online mortgage broker... . "Lenders are going to lose money holding that house," Svinth said. "They have to maintain it, insure it, market it . . . until it sells."
Home loan demand rises despite higher rates Reuters Julie Haviv Jan 03, 2007 U.S. mortgage applications rose last week, led by increased demand for home purchase loans even as interest rates climbed for a fourth consecutive week, an industry trade group said on Wednesday. ... Jim Svinth, chief economist at LendingTree.com, an online company that matches consumers with lenders, said the slim difference between the borrowing costs for some fixed- and floating-rate loan types has been luring consumers. ... "While we expect interest rates to stay relatively flat for the next couple of quarters, it's interesting to note that the spread between fixed and adjustable rate mortgages is the tightest it's been since December 2000," he said. "This represents a real opportunity for borrowers to shift from adjustable to fixed rate loans," said Svinth, who is based in Irvine, California.
Top off your New Year's list with 4 nearly painless financial resolutions USA Today Sandra Block Jan 01, 2007 ... Getting your personal finances in order sounds like a task best left to the closet organizers. But there are many ways you can improve your financial security without exerting much effort, or even spending much money... .Checking your credit reports periodically is a good way to protect yourself against identity theft. ... You can order all three credit reports at the same time or order a different one every four months. The advantage to the latter strategy is that you can track changes in your credit report over the year, creating your own credit-monitoring service. This strategy only works, however, if you remember to order a report every four months, says Bridget Smith of LendingTree, an online company that helps consumers shop for loans. If you're not very organized, you're better off ordering all your reports at the same time, she says.