LendingTree in the News 2008

Mortgage Rate Trend Index
Bankrate.com
Nov 13, 2008
This week (Nov. 13 - Nov. 19) the experts say: Rates are destined to fall even more.

With the TARP shift in focus away from mortgages and into the asset-backed market (car loans, credit cards, and student lending), expect the influence of mortgage relief to be short lived. The good news is we are seeing prices on homes going lower and rates are expected to also head lower as the bond market rallies. The bad news is we are expecting a continued decline in consumer spending, which makes up two-thirds of the GDP, and consumer confidence is at its lowest level since at least 1967, when records began. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C. - RATES DOWN

Mortgage Rate Trend Index
Bankrate.com
Nov 06, 2008
This week (Nov. 6 - Nov. 12) the experts say: It's almost a three-way tossup, with a slight plurality saying that they expect rates to fall.

Election results have influenced equities, but bonds have remained range-bound with mortgage coupons trading in a 60-basis-point window. (Up 60 basis points, then down 60 basis points, and the same cycle over and over.) That said, it's not the magnitude of the change. Rather, it's the time frame in which the change occurs that has been very tight, showing there is still elevated uncertainty. This situation is not helping the credit markets and consequently, will be negative for borrowers in the coming weeks. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C. - RATES UP

How to Beat 'Card Bind'
The Wall Street Journal
Oct 26, 2008
Let's call it the "credit-card bind."

You're trying to get your life established. You get a job. Then you set out to buy a car, rent an apartment, maybe even you plan to buy a house -- all of which require credit. But you resisted getting a credit card in college. So now your credit history is pretty much nonexistant. And getting a card after college is harder, since most lenders stop advertising to graduates the same generous deals that they routinely offer students.

What do you do? How do you get a credit card when you need one but can't get one because you did the right thing in college and didn't get one? That's the credit-card bind, and here are five tips that can help you get out of it.

1. Do your research.
"Shop around," says Nicole Hall of LendingTree.com. "Some of those student offers may still be available -- you just might have to look a little harder."

Research will help you find the card that you have a better chance of getting approved for, such as ones requiring an "average" credit history.

Ms. Hall recommends her site and CreditCards.com for comparing cards.

Consumers addicted to plastic?
South Bend Tribune
YaVonda Smalls
Oct 22, 2008

$8,000. That's how much the average American family is said to carry in credit card debt.

If they pay the minimum of this balance every month, it could take more than 20 years to get out of the red. That means two decades from today, you could still be paying off that DVD player, laptop computer and shirt you bought in the heat of the moment last Christmas.

It's an overwhelming reality for the many consumers who have fallen victim to a buy-now, pay-later society, where people take out loans and carry multiple credit cards without giving it a second thought.

...Fortunately, whether you're a few thousand dollars or half a million dollars in the red, you can take steps to rise above it, experts says:

Chip away at old debt. Make your biggest payments on debts with the highest interest first, and pay more than the minimum on your loans, says LendingTree.com. Also be sure to earmark end-of-year bonuses, raises and income tax returns for paying off debt, too.

Mortgage rates skyrocket
Bankrate.com
Holden Lewis
Oct 16, 2008
Mortgage rates skyrocketed this week as Wall Street tried to discern the ever-shifting contours of the Great Bailout. The benchmark 30-year-fixed-rate mortgage rose 54 basis points to 6.74 percent, according to the Bankrate.com national survey of large lenders. ...The mortgages in this week's survey had an average total of 0.42 discount and origination points. One year ago, the mortgage index was 6.16 percent; four weeks ago, it was 6.49 percent.

...Cameron Findlay, chief economist for LendingTree.com, says the roots (sorry) of the increase in mortgage rates lie in technical matters. The money in a mortgage-backed security goes in three directions: the investor, Fannie Mae or Freddie Mac, and the servicer who handles billing and collections. Lately, as prices for mortgage-backed securities have plummeted, investors and servicers have been squeezed -- so they demand higher coupon yields and therefore higher mortgage rates. See? Techinical.

It comes down to unpredictability. When mortgage rates are so volatile, no one can predict how long borrowers will keep their loans before they refinance them. "Those expectations are being totally blown out of the window," Findlay says. "There are no models out there that are coming even close to predicting" how mortgages will perform.

The Bright and Dark Sides of Progress
The Motley Fool
Dayana Yochim
Oct 15, 2008

Climb aboard the way-way-back machine -- we're taking a brief journey to the year 1993 to see how everyday folks of yore managed their money.  Look there! It's a guy reaching for plastic to pay for his groceries. Over yonder are eager homebuyers seeing how a little creative financing might get them into their dream home. There's someone lamenting the high costs of sending Junior to college and another person wondering if they should bother moving their money to a different bank for a slightly better interest rate.

Hold on a sec...is this time-travel contraption actually working?

...Not in the mood to negotiate for a better rate on your mortgage? Let a service like LendingTree.com mediate and get banks and brokers to compete for your business. There's no more wndering whether the electronics store down the block has the best price on a printer -- or even if it has the model you want in stock.  It takes only a few quick clicks to find out.

Mortgage Rate Trend Index
Bankrate.com
Oct 09, 2008
This week (Oct. 9 - Oct. 15) the experts say: Rates will fall, but don't count on them staying there.

Treasury yields being driven lower are being forced down by large declines in domestic and global equity markets. Each move down suggests the impact on the debt market will be less until a point where debt markets are no longer impacted by equity declines.  After a run like we've seen, this point is where we are today. Rates are expected to increase despite any immediate declines in equities (or adjustments to the Fed target). Fundamentally, concern over access by firms to cash and short term funding equivalents has not been erased. Look at one-month LIBOR for direction. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C. - RATES UNCHANGED

Are you yearning to be an entrepreneur? 'Go do it'
Charlotte Observer
Rick Rothacker
Sep 14, 2008
Doug Lebda is a latecomer to reading Jack Welch's "Jack: Straight from the Gut," but he's got good reason to pick up the business book classic.  When he was an executive at IAC/InterActiveCorp., Lebda got to work regularly with the former General Electric Co. honcho, now a consultant. "What's great about him is he can be both very tough and very demanding but also extremely inspirational," said Lebda, chief executive officer of Charlotte-based Tree.com, Inc., the parent company of online loan marketplace LendingTree.

...Lebda, who founded LendingTree in 1996 and returned when IAC spun off Tree.com this year, gets his news from MSNBC, CNBC and the Wall Street Journal. Online he uses Yahoo Finance for financial news and searches with Google and Ask.com (an IAC property).  ...For those who'd like to emulate his entrepreneurial success, Lebda has simple advice. "Go do it," he says. "The challenge and thrill of being an entrepreneur is you'll never work harder at anything in your life, but you'll also never enjoy it more. At the same time, anybody who wants to do it for work/life balance should find another profession."

Mortgage rates drop; investors applaud Freddie, Fannie rescue
USA Today
Adam Shell and Anna Bahney
Sep 12, 2008

Wall Street staged its biggest rally in a month Monday as stock investors bet that the government's move to seize and backstop the USA's two largest mortgage finance companies will help stabilize the housing market, thaw credit markets and boost the ailing economy.

...Average rates on 30-year fixed-rate mortgages, which have hovered well above 6% for months, plunged from 6.5% Friday to near 6% Monday. And most analysts expect the government's takeover of Fannie and Freddie to extend that decline, at least in the short term.

...Cameron Findlay, LendingTree chief economist, says borrowers will see better rates, but maybe not as attractive as they'd hoped. He cautions that lenders might not pass all of the benefits on to borrowers.

Mortgage 101: Avoiding pitfalls
The News & Observer
Vicki Lee Parker
Sep 07, 2008

The days of getting a home loan without proof of a paycheck or any indication of your financial health appear to be gone. But that doesn't mean the process is any less confusing or that all lenders are completely trustworth.

...Online Help

*LendingTree (http://www.lendingtree.com/beta/smartborrower/first-time-home-buyers/): Help in finding real estate agent and explains the difference between an agent and a REALTOR, the role of real estate agents, how to find the right home, closing day nightmares and other similar information.

Mortgage rates fall for 3rd week in a row
Bankrate.com
Holden Lewis
Sep 04, 2008
Fixed mortgage rates fell for a third week in a row as oil prices dropped.

The benchmark 30-year fixed-rate mortgage fell 5 basis points, to 6.55 percent, according to the Bankrate.com national survey of large lenders.  A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.41 discount and origination points. One year ago, the mortgage index was 6.5 percent; four weeks ago, it was 6.74 percent.

...Cameron Findlay, economist for LendingTree.com, attributes the calming of the mortgage market partly to smaller swap spreads over the past week and a half. Interest-rate swaps are a hedge that mortgage companies, including Fannie Mae and Freddie Mac, use to protect themselves from interest rate flucuations. Smaller swap spreads area a sign that mortgage lenders are having a less-difficult time getting to money to lend.

2nd-Growth: Tree.com Looks Ahead
American Banker
Maria Aspan
Aug 21, 2008
LendingTree, LLC is standing alone again.  Today is the first day of trading for shares of Tree.com, Inc., one of four subsidiaries spun off Wednesday night by IAC/InterActiveCorp.

The newly independent company, which includes LendingTree's flagship mortgage lead-generation and originiation lines, opens for business at a time when mortgages are hardly the slam-dunk opportunity they were a couple of years ago.

To deal with that, Doug Lebda, Tree.com's chairman and chief executive officer, said he plans to expand its student lending and insurance offerings into full-fledged businesses with their own sites and brand names.

"The overall strategy is to say, 'What other areas of consumer credit should LendingTree bve fulfilling?'", Mr. Lebda said Tuesday. "The company wasn't founded as a mortgage site. We always had the  full suite of consumer products."

Mortgage Rate Trend Index
Bankrate.com
Aug 21, 2008
This week (Aug. 21 - Aug. 27) the experts say: Most likely rates won't change much.

Expect rates to remain range-bound as they have for much of the past month. Any changes will be predicated on changes to do with the GSEs. In the event rates do move higher, we would expect a larger-than-usual shift and at a faster rate due to volatility, which is the underlying key to rate changes and the mortgage valuation process. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C. - RATES UNCHANGED

Tree surgery
Charlotte Observer
Rick Rothacker
Aug 21, 2008
It's back to the future for Doug Lebda. Twelve years after founding LendingTree, the online mortgage marketplace, Lebda has returned as the chief executive of the Charlotte-based company - renamed Tree.com, Inc. to signify its diversification into other services.  His challenge is to navigate a national housing crisis that has depleted the company's profits and led to major job cuts over the past year.

Lebda, 38, survived the dot-com bust in 2000 and 2001, sold LendingTree to Internet conglomerate IAC/InterActiveCorp in 2003 and eventually became president of New York-based IAC. Last year, however, IAC said it was spinning off LendingTree and three other units so it could focus on its Web businesses.  Today the separation is official, and Lebda is back at the helm of a stand-alone public company.

LendingTree, which matches borrowers with lenders, remaines Tree.com's signature product.  But the company also has a network of real estate agents (www.realestate.com), makes its own loans and is branching into credit cards and insurance.  Recent initiatives include refreshing the LendingTree site (www.lendingtree.com/beta) and preparing a new student lending site (www.tuitiontree.com).

LendingTree will be back on its own starting Aug. 21
Charlotte Observer
Aug 12, 2008
LendingTree, Charlotte's most successful tech companies from the dot-com era, is set to return as a Charlotte-based standalone company - with founder Doug Lebda at the help - next week.

Parent IAC/InterActiveCorp said Monday that its previously announced spinoffs will stand on their own again beginning August 21. IAC Chief Executive Officer Barry Diller is also separating the HSN shopping channel, Ticketmaster, Inc., and the Interval Leisure group time-share exchange service.

IAC sets date for LendingTree spinoff
Charlotte Business Journal
Aug 11, 2008
LendingTree will become a stand-alone company in one of four subsidiaries that IAC/InterActiveCorp plans to spin off as independent businesses.  ...Charlotte-based LendingTree will trade on the NASDAQ exchange under the symbol TREE. LendingTree and its related operations will remain in Charlotte and operate as subsidiaries of Tree.com, Inc. Tree.com will also be the parent company of GetSmart.com and RealEstate.com.

Mortgage Rate Trend Index
Bankrate.com
Aug 07, 2008

This week (Aug. 7 - Aug. 13) the experts say: Rates look likely to increase.

More than the absolute direction of rates given these volatile times, borrowers should focus on the affordability of homes, i.e., how much they can qualify for is a function of four key elements. As a borrower you should consider each of these carefully and use the tools found on mortgage lender Web sites to "ball park" your payments based on: loan amount requested, income, credit score and the amount of debt owed. Knowing how lenders develop pricing makes you an informed borrower. Cameron Findlay, chief ecnomist, LendingTree.com, Charlotte, N.C. - RATES UP

New tool shows what it takes to qualify for FHA mortgage
MarketWatch
Amy Hoak
Aug 01, 2008

Homeowners at risk of foreclosure may be able to benefit from a provision in the housing bill signed by the president this week that will allow them to refinance into more-affordable loans backed by the Federal Housing Administration. To help people interested in a FHA mortgage, LendingTree.com also this week launched an FHA eligibility tool. Visit LendingTree.com. "We've discovered that most borrowers are unaware of FHA-insured loans and what it takes to actually qualify for one," says Nicole Hall, editor-in-chief of the LendingTree Smart Borrower Center, in a news release. FHA-insured loans once had been seen as an option for lower-income borrowers, those with low down payments and those with weak credit scores. But now FHA is attracting even "well-to-do borrowers in affluent housing markets," according to the release.

Mortgage Rate Trend Index
Bankrate.com
Jul 31, 2008

This week (July 31 - Aug. 6) the experts say: Rising rates are probably in your future.

More tahn the absolute direction of rates given these volatile times, borrowers should focus on the affordability of homes, i.e., how much they can qualify for is a function of four key elements. As a borrower, yoou should consider each of these carefully and use the tools found on mortgage lender Web sites to "ball park" your payments based on: loan amount requested, income, credit score and the amount of debt owed. Knowing how lenders develop pricing makes you an informed borrower. Rates - UP. Cameron Findlay, chief economist, LendingTree.com, Charlotte, NC.

LendingTree facilitating FHA-backed loans
Inman News
Jul 29, 2008

Borrowers who are interested in Federal Housing Administration laon guarantee programs can now check their eligibility and request four loan offers from qualified FHA lenders using the LendingTree Network. LendingTree has expanded its filters to allow borrowers looking for refinance or purchase loans to check their eligibility for FHA loan programs based on county-level loan limits and loan-to-value ratios.

Mortgage rescue will also aid banks
Charlotte Observer
Rick Rothacker
Jul 29, 2008

Congress' plan to allow people to refinance into more affordable mortgages won't just relieve thousands of homeowners - it's also expected to save the banks who issue the loans billions of dollars. Most banks will end up losing much less money handling mortgages over to teh government than they would if the loans defaulted and the homes went into foreclosure. Plus, it will be up to the bank to decide whether to allow the homeowner to refinance....Meanwhile, Charlotte-based LendingTree plans to debut today a feature on its Web site that allows customers to submit requests for an FHA loan and receive competing offers from banks. The online lending marketplace also is launching a tool that helps borrowers determine if they are eligible for an FHA loan. It's available at www.lendingtree.com/fha-loans.asp.

How the housing bill hits home
MarketWatch
Amy Hoak
Jul 28, 2008

One of the highlights of the housing bill waiting to be signed by President Bush is the tax creidt of up to $7,500 for first-time home buyers. But read a little closer and it doesn't seem quite as appealing for buyers: that credit has to be paid back. That's just one of the lines of find print in the bill that mutes the benefit to consumers, housing analysts say. According to the bill, the tax credit has to be returned in installments over 15 years. In essence, the perk amounts to a no-interest loan, said Cameron Findlay, chief economist for LendingTree.com, an online commpany that matches consumers with lenders.

Morgage Rate Trend Index
Bankrate.com
Jul 24, 2008

This week (July 24 - July 30) the experts say: Mortgage rates still have a ways to go up.

Rates in the past seven days have risen more than 35 basis points after taking more than 30 days to decline as much. This example clearly depicts a trend in the market that allows rates to increase rapidly but is cautiously slow to bring rates down. Regardless of your thoughts on the direction of rates, recognize that when rates do increase they will increase fast and when they decline, it will take time. The new "covered bond" market proposal may in fact bring rates down if legislation can be adopted in a timely manner. Rates - UNCHANGED. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Mortgage rates rise to highest level in a year
Bankrate.com
Holden Lewis
Jul 24, 2008

Mortgage rates took a big jump this week, to their highest point in a year. There's no single explanation for the rise. The benchmark 30-year fixed-rate mortgage rose 35 basis points, to 6.77 percent, according to the Bankrate.com national survey of large lenders. ...Enter the federal government. Treasury Secretary Henry Paulson announced that the goverment would offer cheap credit to Fannie and Freddie if they needed it in a pinch. So far, they haven't gone to Uncle Sam for a loan. But Fannie's and Freddie's troubles put upward pressure on rates. "Even if there is a U.S. government bailout, there's going to be addiitonal constraints put on Fannie and Freddie in terms of how much they can actually lend," says Cameron Findlay, chief economist for LendingTree.com. "That was going to constrain the market. Anytime you tighten the noose, it will increase the cost of borrowing." Findlay predicts that "it will actually help rates" now that Congress and the White House are in general agreement about a housing bill that would increase a stronger regulator for Fannie and Freddie, among other things.

Q&A: Is the interest rate for a car loan based upon your credit score/FICO score?
Cars.com
Joseph Bruzek
Jul 17, 2008

Your credit score is an important factor in getting a low interest rate on an auto loan...Credit scores using FICO ratings range from 300-850, and in today's market, a "good" credit score is considered 720 and above, according to a LendingTree.com representative. Credit scores are, in fact, an indication of risk, and if you're high-risk with a low score, the lender will likely qualify you for a high interest rate loan.

How to Invest in the Current Economic Climate
Seeking Alpha
Tyler McKinna
Jul 16, 2008

...As mortgage and interest rates may climb higher, prepaying your loans will give you a guaranteed return on your investment equal to the interest rate on the loan. Moreoever, no single investment option is likely to provide guaranteed returns greater tahn the rate of your interest on your mortgage. In addition, the psychological satisfaction of reducing your overall debt can trump any financial return. This is especially true for the conservative investor. If you are concerned about rates increasing, you might want to lock in the interest rate on your mortgage with a fixed rate loan. If you have a good credit score, banks will likely really want your business as leading regulations are tightening. This would be a good opportunity to have a service like LendingTree.com working for you to get the best rate.

A rescue, but not a remedy
Baltimore Sun
Paul Adams and Laura Smitherman
Jul 15, 2008

Consumers still face the prospect of rising mortgage rates, inflation and tighter credit despite the federal government's move to rescue Fannie Mae and Freddie Mac and avert a meltdown in the lending industry, economists and banking experts say. ...Fallout from the government rescue plan will also factor into the rising price of commodities, including oil, said Cameron Findlay, chief economist for LendingTree.com. By bailing out Freddie and Fannie, the U.S. government is making its own finances shakier by taking on more debt, potentially contributing to the falling value of the dollar, he said. When the dollar is falling, investors seek the safety of commodities, which has fueled the soaring cost of oil and grains for food. At the same time, the government's rising debt will make foreign investors more likely to shy away fromo government-sponsored instruments, Findlay said. That will hurt bond prices and contribute to rising interest rates for consumers who want to buy a house, take out a home equity line of credit or secure other loans.

Mortgage Rate Trend Index
Bankrate.com
Jul 10, 2008

This week (July 10-July 16) the experts say: Rates are more likely to fall than rise.

As demand for credit is driven higher relative to supply, expect unemployment to increase and domestic growth to slow, potentially leading to stagflation. But more likely we will end well shy of that extreme. (In) 35-45 days from now, expect rates to be unchanged given (that) most of the worst-case scenario is already being factored into these levels. With the number of U.S. dollars per euro off its high of $1.60 (and) now at $1.56, the dollar has signaled some strength, it this continues it may drive rates slightly lower and help on oil prices. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Dump your ARM now -- if you can
MarketWatch.com
Chuck Jaffe
Jul 01, 2008

While the media and the market scrutinize every word of the Federal Reserve Board's message last week, it seemed to overlook the most important signal, which was there loud and clear for anyone reading between the lines. It went like this: "Refinance your adjustable-rate mortgage now, if you can."...Cameron Findlay, chief economist for LendingTree, says that homeowners facing a reset need to work the numbers and tehir own circumstances. Clearly, falling home prices are one factor which may make any type of refi hard to complete, but he also suggested that a homeowner's time horizon also plays into decisions about any new deal. "If you are planning to move in the next two or three years, it may not make sense to jump into a refi right now," says Findlay. "The Fed's not going to be able to increase rates in a rapid manner, so you don't have to rush out and get a deal, but you do need to be prepared because the only direction rates are going to go from here is up."

Mortgage rates creeping upward
USA Today
Anna Bahney
Jun 30, 2008

As if the real estate slump weren't severe enough - with prices sinking and foreclosures dumping ever more homes on the market - another threat has emerged: rising mortgage rates. Low rates helped fuel the housing boom, and rates had remained relatively low even after the boom ended more than two years ago. But now, with rates creeping back up, the wobbly real estate market could be losing one of its last pillars of support. ..."In the next three months, I'd see rates rising only slighly, because the concern of inflation is already factored in to where they sit today," says Cameron Findlay, chief economist at LendingTree.com. But in the next six months, Findlay, cautions, rates could rise rapidly. "If we don't have inflation under control by then, and there are still signs of inflation - the dollar's continuing to be eroded, oil prices are still high - rates are going to be rising faster." Still, Findlay and other experts suggest that home prices and credit availability will have more pull in drawing in buyers than mortgage rates will. Historically, he notes, even 7% is a relatively low rate.

Bust, boom or treading water? What's up with the economy?
McClatchy Newspapers
Kevin Hall
Jun 28, 2008

Everywhere you turn, the news on the economy seems dire. Oil prices are through the roof, home prices are through the floor, the stock market's plunging and the entire U.S. economy seems shaky. Here's a look at what's going on, why and when we'll know things are turning around.

Q. When will housing stablize and rebound?

A. The answer will determine when the economy bounces back. Housing is shaving about 1 percentage point off national economic growth every quarter. Nationally, home prices in April were 15.3 percent lower than in April 2007, according to the S&P/Case-Shiller Index of 20 major metropolitan areas...."I think there's some room to go (down) on this market," said Cameron Findlay, chief economist for online mortgage lender LendingTree.com in Irvine, Calif. Home prices are unlikely to bottom before next March, he said. Until then, "I think foreclosures are going to continue to drive those prices down, and that's driven primarily by the higher inventory of unsold homes."

Mortgage Rate Trend Index
Bankrate.com
Jun 26, 2008

This week (June 26 - July 2) the experts say: It looks like mortgage rates are on a tight leash. They're not going anywhere.

Mortgage rates driven by investor concerns about inflation are more in line as fear of rising rates is doing just as good a job actually pulling the trigger. Come September, however, if inflation remains a concern and no action is taken, it will cause the market to swing quickly toward higher rates. Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C. - RATES UNCHANGED

Mortgage Rate Trend Index
Bankrate.com
Jun 23, 2008

This week (June 19-June 25) the experts say: There might be a dip before rates rise again.

Commodity prices continue to draw the attention from most economists who are concerned with the impact higher raw material levels will have on the cost of goods sold and thus, wages. Foreign demand is controlling the commodity price, so Fed intervention is only going to be a reaction and likely too late. If you think bond prices and equities are inversely related, check again -- rates will be forced higher, but not by the Fed. Cameron Findlay, chief ecnomist, LendingTree.com, Charlotte, NC. - RATES UP

Mortgage Rate Trend Index
Bankrate.com
Jun 19, 2008

This week (June 19-June 25) the experts say: There might be a dip before rates rise again.

Commodity prices continue to draw the attention from most economists who are concerned with the impact higher raw material levels will have on the cost of goods sold and thus, wages. Foreign demand is controlling the commodity price, so Fed intervention is only going to be a reaction and likely too late. If you think bond prices and equities are inversely related, check again -- rates will be forced higher, but not by the Fed. Cameron Findlay, chief ecnomist, LendingTree.com, Charlotte, NC. - RATES UP

Opting Out of Title Insurance
US News & World Report
Kimberly Palmer
Jun 18, 2008

When attorney Mark Rutzick sold his home in Fairfax, Va., and bought a new one in nearby Oakton, he made what many might consider a risky move: He turned down title insurance. While lenders require borrowers to pay for the insurance that protects loans against unexpected liens and other claims, owners often have more leeway when it comes to insuring their own home equity. ...While shaving a few thousand dollars off closing costs is tempting, many in the real estate industry recomment against it. Pam Hamrick, vice president of LendingTree.com, says she has seen customers without title insurance policies run into problems that are expensive to clear up. "It's like homeower's or auto insurance. No one wants to pay for it, but when you need it, not having it is unthinkable," she says. Even relatively new homes, such as Rutzick's, carry risks, adds Hamrick. Liens can be placed by builders, contract workers, and previous landowners or their heirs. "It is possible that there were owership change issues prior to the builder owning the land or...that the transfer of title from the previous landowner to the builder was done improperly," she explains.

Shrinking Lines of Credit
The New York Times
Bob Tedeschi
Jun 09, 2008

When economists say that consumers used their homes as A.T.M.'s during the recent credit boom, they are often talking about home equity lines of credit - a form of second mortgages popular among homeowners looking for a cushion against future cash shortfalls or a way to finance a new kitchen or a vacation. It is no secret that lines of credit are harder to find these days. But what many homeowners may not realize is that their existing lines of credit can be eliminated at the lenders's whim. ...According to Cameron Findlay, chief economist at LendingTree.com, an online mortgage referral and origination service, borrowers with credit lines need not be blindsided by the bank. "If you're wondering if you could be next," he said, "just contact your lender and ask them what your loan-to-value ratio is for that loan."

Mortgage Rate Trend Index
Bankrate.com
Jun 05, 2008

This week (June 5-11) the expert say: Rates will most likely rise.

No surprises expected in terms of Fed changing the discount rate and no renewed pressure on member bank reserve requirements (Tier 1 Capital), so expect rates to settle from here for the next 30 days to 45 days. If the oil futures increase in really due to exchange-traded fund volume, expect a small pullback in oil prices. This will translate into stability on manufactured goods prices and hence mitigate inflation concerns. RATES UNCHANGED - Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Mortgage Rate Trend Index
Bankrate.com
May 29, 2008

This week (May 29-June 4) the experts says: Rates are likely to rise.

(With) consumer confidence at a 15-year low, spending, i.e., consumption, will cut back further to drive rates higher. Thirty-day forward mortgage ommitment rates are five times more volatile in 2008 vesus the same time frame last year, being depicted by a rate cycle with sharp decreases and consequent large increases, much like the cycle we have seen for the last month. RATES UP - Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Aggregators generate most online loan apps
Inman News
May 27, 2008

Consumers say the Internet is a great tool for companies mortgages and home-equity loans offered by different lenders, byut rate it as less effective than the telephone or in-person meetings for obtaining information tailored to their specific situation or needs. Loan originators who want to get more consumers to fill out applications online should make their Web sites more user-friendly, offer customized advice online, and better integrate online and offline channels so consumers can switch to phone or online chat when questions pop up. Thos are among the findings of a Deloitte Consulting LLT report, "The Silver Lining in Lending: Turning Doubters into Online Believers."...Of those who applied online, 59 percent said they used a loan aggregator Web site to research offerings and solicit rate quotes. Of those who used an aggregator, 61 percent went to LendingTree.com and 12 percent to Bankrate.com.

Air miles latest perk in home financing
The Daily Herald
Tom Kelly
May 25, 2008

Air miles are a curious commodity. The people who have the most rarely take the time to figure out how to most efficiently use them, while others who guard them like gold would happily miss their mother's birthday if they could fly someplace "for free." Perhaps it's been the rotten early spring weather, the need to travel at this graduation ime of year or the real estate industry pulling out all the stops to accentuate the positives of buying a home and getting a mortgage, but I have been hearing and reading more announcements intended to tweak my interest in air miles and getaways. For exammple, there are many lenders, including LendingTree, Washington Mutual, Wachovia and Chase, who will give you 1,000 to 1,300 air miles for each $10,000 of your home purchase loan amount up to a maximum of 25,000 miles. Programs vary, depending upon the lender and air carrier.

Mortgage Rate Trend Index
Bankrate.com
May 22, 2008

This week (May 22-28) the experts say: The results are almost evenly spit. No strong trend is evident.

Prices paid to U.S. producers are heading higher as expected by rising raw material costs - nothing new there, but it's rising faster than expected. As this continues for a short period, it will drive down borrowing rates on mortgages. However, once prices are forced to increase, modest inflation will cause rates to rise. It won't be rates that make homes affordable - it will be price devaluation. RATES UP - Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Your Short Course on Key Money Lessons
US News & World Report
Kimberly Palmer
May 19, 2008

Dozens of financial education programs aim to teach adults and kids how to make smart money decisions. Here are some of their top lessons:

Set Goals Deciding waht you want, whether it's an ealy retirement or a new car every two years, setting goals helps you prioritize.

Make a Budget NEFE's curriculum also encourages students to consider where their money goes and whether it's aligned with broader goals.

Create an Emergency Fund Devika Kamboh, a financial planner and volunteer teacher for the nonprofit Dress for Success's money management workshops, tells her students to build an emergency fund with six to 12 months' worth of salary.

Manage Debt The ability to borrow money to buy a home or a car dependes on being creditworthy, a concept explained in materials distributed by the American Bankers Association's Education Foundation.

A list of financial literacy resources, with links to useful websites including the LendingTree Smart Borrower Center, is at www.usnews.com/finlitresources

LendingTree file specifies post-spinoff plans
The Charlotte Observer
Rick Rothacker
May 15, 2008

As it prepares to become an independent company once again, Charlotte-based LendingTree is branching out. ...Part of New York-based IAC since 2003, LendingTree and related businesses are set to be spun off into a separate company, likely in August. The parent company will be known as Tree.com, Inc., according to a securities filing Tuesday. ..."We're building a much bigger, much more diverse company than when it was just LendingTree," Doug Lebda said in an interview. "At the same time, we're keeping all of our core competencies and entrepreneurial spirit."

Mortgage Rate Trend Index
Bankrate.com
May 15, 2008

This week (May 15-21) the experts say: There's a good chance that mortgage rates will rise in the coming weeks.

Rising borrowing costs undermine the rates borrowers will pay. The two issues to monitor: 1) LIBOR reform where U.S. banks have potentially understated their borrowing costs. and 2) Liquidity, which the Fed is focused on infusing more and more of. However, less or even low access to liquidity equals higher rates. RATES UP - Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Mortgage Rate Trend Index
Bankrate.com
May 08, 2008

This week (May 8-14) the experts say: Rates are likely to go up.

Eighty percent of the conforming loans issued last quarter were either owned or guaranteed by FMNA/FHLMC. Relaxed capital requirements by OFHEO will free up some much-needed liquidity. This should be positive for borrowers in terms of sustaining rates neutral for a short period of time. This does not erase inflation concerns which, long-term, will drive rates higher. RATES UNCHANGED - Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

Lending Experience
Inside Direct Mail
Marissa Fabris
May 01, 2008

Youth doesn't always suggest inexperience. And that's particularly true for the LendingTree direct mail program that was launched in 2006 as an extension of its already-established acquisition efforts that included e-mail and co-registration. The online loan and realty services marketplace has long provided consumers with a highly personalized service aimed at matching consumers with potential lenders for a variety of loans. The company's year-old, #10 acquistions control highlights this service as it reaches out to non-LendingTree customers with different types of mortgage products. ..."All of our letters highlight the key consumer benefits of using LendingTree, and this was no exception," explains Tracy Jenkins, director of direct marketing for LendingTree. "This letter expands on our brand message, 'When Banks Compete, You Win!,' when explaining to the consumer that they can complete one simple form and receive up to four real offers in minutes."

Mortgage Rate Trend Index
Bankrate.com
May 01, 2008

This week (May 1 - 7) the experts say: Rising rates are most likely in the cards.

Experts comments: Expect a small increase despite the Fed target rate being lowered 25 basis points. COnsumers should follow prices, if they are pressured higher it will cause bond rates to be driven lower and the subsequent flight to quality will place pressure again on mortgage rates to decline. RATES UP - Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

How Stay-at-Home Moms Are Filling an Executive Niche
The Wall Street Journal
Sue Shellenbarger
Apr 30, 2008

Lots of emplowers would like to be able to hire cheap, temporary teams of seasoned pros with experience managing $2 billion investment portfolios, running ad campaigns or earning Ph.D.s in neuro science. ...a team of five stay-at-home moms hopped on a one-month project at LendingTree to rewrite 600 job descriptions after several acquisitions and integrate them into its organization chart. "I was very impressed with the caliber of women" delivered by MomCorps, an Atlanta staffing firm, says Kathy Fritzsche, vice president, rewards, for the online lending exchange. Ivanna Garibaldi Campbell, Charlotte, N.C., a former Bank of America senior manager who led the LendingTree team, headed project meetings with her baby in tow. Once she became a stay-at-home mom, she says, it was "tough to go from 500 mph to stepping back...I found myself a little stir crazy."

Financial Literacy Resources Online
US News & World Report
Kimberly Palmer
Apr 02, 2008
The following web sites offer money management lenssons for consumers teachers, and parents:
...LendingTree: The Smart Borrower Center teaches visitors about buying and selling real estate, such as the risks and benefits of taking out a home equity loan.

Hitting Up Your Parents
The Wall Street Journal
Shelly Banjo
Mar 16, 2008
To twentysomethings in need of a loan, the Bank of Mom and Dad can look pretty enticing these days....But before you ask family members for money, make sure you can both afford the loan. Also, plan your approach carefully to avoid emotional pitfalls that could arise along the way. First, consider the emotional implications of asking for the cash. Will it put a strain on your relationship? "Banks don't have emotions. Parents and family members do," notes Nicole Hall, editor in chief of Smart Borrower Center at Lendingtree.com.

Rate drop equal re-fi? Not so fast
The Charlotte Observer
Christine Rexrode
Mar 16, 2008
Whenever the Federal Reserve lowers interest rates, the phone calls start pouring in for Sam Barnett, a Realtor in Charlotte.

And Barnett, 29, explains again and again: Despite what ads on the Internet or fliers in your mailbox might imply, the Federal Reserve's actions don't determine the interest rates on mortgages....Maybe you know people who rushed to refinance after the first cuts of January: Charlotte-based LendingTree says it fielded more refinancing inquiries on Jan. 23 than on any other day in the company's 12-year history. But don't assume that you should try to do the same this week, especially if you have a fixed-rate mortgage.

Trading Retirement Dollars for a Mortgage
US News & World Report
Kimberly Palmer
Mar 10, 2008
Dear Alpha Consumer,

I would like to use money in my IRA retirement account as a loan to buy a house. It would be a way to pay the interest to myself (to my IRA), rather than to a mortgage company. Is this possible? Could it be a rental property, or does it need to be my own residence?

Ignore the Headlines
Time
Dan Kadlec
Feb 25, 2008
...As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven't seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues. But let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Low mortgage rates make refinancing attractive
USA Today
Sandra Block
Feb 05, 2008

The past few months have been lonely ones for mortgage lenders, but business is picking up. The phones are ringing, and banks don't have to give away doughnuts to attract customers. They've got something much more enticing to offer: rock-bottom mortgage rates....But while Fed cuts typically lead to lower rates for credit cards and car loans, the Fed doesn't influence long-term mortgage rates. These rates track 10-year Treasury notes, which tend to respond to changes in the economy. In fact, "There are times when short-term rates go down and mortgage rates go up," says Jim Svinth, chief economist for LendingTree.com, a website that connects borrowers with lenders....To get the lowest mortgage rates, you'll need a FICO score - named after the model developed by Fair Isaac (FIC) - of at least 680, and preferably above 700, Svinth says.

Lower confidence greets lower rates
MarketWatch
Amy Hoak
Feb 01, 2008

First, the good news: Many holders of home-equity loans and lines of credit are benefiting greatly from the string of recent Fed rate cuts....But the not-so-good news, as some homeowners are finding out, is that it's more difficult to get approved for one of these loans lately....Home equity products have always been considered by banks to be more risky than a first mortage, said Pam Hamrick, vice president of LendingTree Loans. That's because the first lien takes priority, so if a borrower defaults, the second mortgage gets paid off after the first mortgage does, she says. And with foreclosure volumes breaking records lately, lenders are concerned that first-lien loans will be paid back let alone home-equity lines. "If what the marketplace is experiencing is higher delinquencies, banks and other lenders will try and protect their position," Hamrick said.

Win Interest Rate Roulette
The Motley Fool
Dayana Yochim
Feb 01, 2008

First the good news. The Fed's rate-lowering bender is cause for celebration if you carry credit card debt (APRs on standard cards are now less than 14%), have a home equity loan or line of credit, or are shopping for a student loan. Even though mortgage rates are tied to the Treasury market, those, too, have been significantly prunned. In January, 30-year fixed mortgage rates dipped to their lowest in two years (5.5% on conforming loans of $417,000 or less), leading to a record-breaking refinance day at loan marketplace LendingTree.com. Holders of jumbo mortgages are finally seeing some rate relief, too, with 30-year jumbo loans around 6.66%.

Another Fed cut: A rock...Bernanke...and a hard place
USA Today
Sue Kirchhoff and Barbara Hagenbaugh
Jan 31, 2008

The Federal Reserve pushed on with the most aggressive series of interest rate cuts in decades Wednesday, slicing a key rate by half a percentage point and signaling that more reductions are possible if housing and credit markets fail to revive....Homeowners who haven't already tapped their home equity with have a hard time getting a new line of credit or home-equity loan, says Jim Svinth, chief economist for LendingTree.com. Lenders have tightened standards. Even borrowers with good credit could pay more for a new home-equity line, he says. But, "If you already have one and have an outstanding balance, your cost of financing is going down."

When a Mortgage Overwhelms, Change the Terms
US News & World Report
Kimberly Palmer
Jan 28, 2008

Dear Alpha Consumer, Two years ago, my husband and I purchased a home for $217,000. My husband works in construction and is paid a salary plus a bonus, but the new-home-building industry in our area has hit an all-time low, and he has not received any bonus pay in at least six months....We are unable to make our monthly mortgage payments, but the option to sell the house for something smaller is no longer possible....What options do we have besides foreclosure? ...According to Pam Hamrick, vice president of LendingTree Loans, one option is forbearance, where borrowers temporarily make reduced payments or not at all for a period of time...Another option is to ask the lender to modify the terms of the loan so the payments are more afforable, Hamrick says. For example, you may be able to extend the term of the loan so monthly payments are lower.

Mortgage rates drop to even lower levels
Bankrate.com
Holden Lewis
Jan 26, 2008

Mortgage rates have plunged to levels last seen in the refinance boomlet of 2004. Homeowners are getting the message, contacting lenders and brokers in big numbers...."We're expecting the phones to ring off the hook today," said Jim Svinth, chief economist for LendingTree.com, shortly after the rate cut. "From a borrower's perspective, you can be done waiting. Today would be a good day to move on a mortgage." Asking a banker whether you need a new mortgage is like asking a barber if you need a haircut. Of course, the answer is going to be yes. But 30-year fixed rates are rately under 5.75 percent, so Svinth has a point. "I would expect most of the effect to be on the refinance side," Svinth says. "People who knew what they wanted to do, knew they could do it, but were waiting for the right time."

Mortgage refinancings spike after Fed cut
Reuters
Julie Haviv and Al Yoon
Jan 25, 2008

In one of the first signs of life in a battered mortgage market, homeowners are lining up to capitalize on this week's plunge in interest rates, which made an additional $1 trillion in loans attractive for refinacing....Fed Chairman Ben Bernanke's emergency 0.75 percentage point cut in the U.S. central bank's target interest rate on Tuesday is seen as a move to save an economy on the verge of a recession, and provide a much-needed exit for borrowers with mortgages facing the shock of rate adjustments. At LendingTree.com, daily refinance inquiries soared 230 percent to their highest ever, a spokeswoman said....Creditworthy borrowers with adjustable-rate mortgages may be the biggest winners, with the fresh opportunity to escape the $165 billion in prime loans whose payments are slated to rise this year. Those borrowers have been the most active on LendingTree.com, said CD Davies, chief executive officer of the online lender.

What the Fed rate cut means
Bankrate.com
Holden Lewis
Jan 22, 2008

Mortgage rates are falling today following the Fed's unscheduled cut of three-quarters of a percentage point in the federal funds rate. Judging by what's happening to mortgage bond prices, the conforming 30-year fixed is dropping between an eigth and a quarter of a percentage point just today....Jim Svinth, chief economist of LendingTree.com, calls today's Fed cute "positive news for people who have been what I call sitting on the fence." He adds: "Today would be a good day to move on a mortgage."

Make this the year you get out of debt
Glamour
Jan 15, 2008

You might think Molly, 24, is the luckiest person in the world. She has a new boyfriend, lives in a trendy Brooklyn neighborhood and has a stylish gig designing clothes for a company that flies her to Europe literally just to shop. Great job, great apartment, great friends. What's not so enviable? Her debt. Last year her roommate skipped town. As Molly scrambled to pay bills, she maxed out her credit cards and stopped making payments on her art school loans. The interest rate on two of her four cards soared to the default rate of 29 percent. Collection agencies started calling. Now she's about $79,000 in debt. Don't even ask about credit scores. "My family think I should just declare bankruptcy," she says. "But I got into this, and it's up to me to make sure I get out." Molly's situation is not unusual. Fifty-five percent of women agest 25-34 spend at least half of every dollar they make paying off debt, according to an online survey by LendingTree, a mortgage company. And 32 percent have $10,000 or more in credit card debt alone.

Getting Started, via the Web
The New York Times
Bob Tedeschi
Jan 13, 2008

Nearly half of all mortgage shoppers use the Internet to do research on mortgages. How they find reliable information, though, is anyone's guess....So how does one choose mortgage sites? Carefully, according to Brad Strothkamp, who reviews financial services Web sites for Forrester Research, a technology consulting firm. ''It's a challenge,'' Mr. Strothkamp said. For those unfamiliar with mortgages, there are established commercial Web sites like LendingTree.com and Bankrate.com that have tutorials on the borrowing process and the types of mortgages available, and guides for selecting products....For those who are ready to make a home purchase or a mortgage refinance, Mr. Strothkamp recommended Web sites like LowerMyBills and LendingTree, where borrowers submit financial information and then receive loan offers, via e-mail, from lenders and brokers.

Lebda to guide next move for LendingTree
The Charlotte Observer
Jan 08, 2008

One of Charlotte's best-known entrepreneurs will be back in charge when the mortgage Web site is spun off later this year in a broad restructuring of parent IAC/Interactive Corp. Lebda sold LendingTree to IAC in 2003 and became president and chief operating officer of the New York-based Internet conglomerate in 2005. IAC on Monday said it appointed Lebda, 37, to lead its financial services and real estate businesses and to stay on after they become a stand-alone public company amid a nationwide mortgage slump. In an interview, he said it was his decision to make the move and that it came after about a month of discussions with IAC officials.