LendingTree in the News 2009

Companies taking steps big and small to reduce impact
Charlotte Business Journal
Juile Bird
Feb 20, 2009
Promoting environmental sustainability isn't exactly small potatoes for Duke Energy Corp. But potatoes do play a role. The company cafeteria stocks utensils made from potatoes and soy oil, plates made from plant fibers and cups made from corn. Everything is compostable, from SpudWare froks and spoons to the vegetable-based lining inside the cups. ...Online lending network LendingTree has switched to green cleaning and maintenance products at its Ballantyne Corporate Park headquarters....LendingTree also bought copiers that go into energy-saving mode after idling for five minutes. Motion detectors in the conference rooms and bathrooms shut off lights automatically, says spokeswoman Allison Vail.

Mortgage Rate Trend Index
Bankrate.com
Feb 19, 2009

This week (Feb 19 - Feb 25) the experts say: Mortgage rates will most likely fall, or at worst stay flat.

The spread between 10-year Treasuries and interest rates today is at approximately 250 basis points. Assuming the 10-year Treasury is at 2.65 percent, we can expect interest rates around 5.15 percent.  Since mid-December 2008, that spread has been as high as 327 basis points. Borrowers comparing the debt market (10-year Treasuries) with interest rates will need to be cautious because this spread has been getting wider in recent weeks. With news of the stimulus package along with overseas woes, U.S. debt prices have been driven higher (yields lower) all while mortgage interest rates have reamined relatively unchanged. This means the wider spread is the risk premium banks demand from borrowers for perceived exposure in the mortgage market, suggesting things  are getting worse, not better. - RATES UNCHANGED

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

Rates flat in anticipation of housing plan
Bankrate.com
Holden Lewis
Feb 19, 2009

There wasn't much change in mortgage rates this week, as the industry awaited details of the Obama administration's housing plan.  ...Yields on 10-year Treasuries have  fallen about 40 basis points in the last three weeks, without an equivalent decline in mortgage rates, observes Cameron Findlay,chief economist for LendingTree.com.  "It's the risk premium," he says.  "People are saying, 'I want the safety and security of Treasuries.  But mortgages?  I'm not loving you. If I buy a mortgage, I want to be compensated for it, and I want to be compensated more.'"

LendingTree branches out
Charlotte Business Journal
John Downey
Feb 13, 2009
In a troubled mortgage market, LendingTree's parent Tree.com, Inc. is looking - cautiously - to expand. It plans to use LendingTree's high visibility and strong brand to remake the company into a general financial-services Web operation consumers will  consult daily.  The company took a key step in that direction last week. It bought a small consumer budget and financial-management site called JustThrive.com that it will fold into the LendingTree family. Tree.com Chief Executive Doug Lebda says the ultimate goal is to create a full spectrum of financial services on a cluster of Web sites that consumers will use frequently - not just when they're shopping for a loan.

Mortgage Rate Trend Index
Bankrate.com
Feb 12, 2009
This week (Feb. 12 - Feb. 18) the experts say: Mortgage rates probably will fall, or at worst remain about the same.

Just following the small debt market sell-off last week (prices down, rates up), we are now faced with the opposite side of the coin, where perception caused by the lack of confidence in Secretary Geithner's plan has cleared the way for a debt market rally. Prices are now increasing and bond yields declining, but as for mortgage interest rates, don't expect to see the decline in line with bond yield changes.  We see flat interest rates with declining bond yields for the near term, resulting in wider yield spreads. RATES UNCHANGED

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

LendingTree expands product offering
Charlotte Business Journal
Feb 11, 2009
LendingTree has launched a personalized home page on its LendingTree.com Web site that assists customers in selecting a loan.  Dubbed My Account, the page allows users to compare their loan offers side-by-side. Customers will be able to receive and review their loan offers and sort by interest rate or monthly payment. The site also provides data on each lender and loan officer competing for their business.  "My Account takes the guesswork out of loan offers and allows borrowers to make smart decisions about the offers they receive from the LendingTree network of  competing lenders," says Nicole Hall, LendingTree.com Smart Borrower Cener editor-in-chief.

4 Stock Winners of the Housing Stimulus
The Motley Fool
Rick Munarriz
Feb 10, 2009
Homebuilders are rallying lately. Real estate developers were some of the market's biggest gainers last week....So who will make the  most of the eventual housing stimulus provision? I think Realtors, lenders, and sites that match sellers and buyers are most likely to thrive. Here are a few companies with online bents that I think are positioned perfectly:

Tree.com (Nasdaq: TREE) -- Don't go to Tree.com expecting gardening and planting tips. Tree.com includes sites such as LendingTree and RealEstate.com. LendingTree began as a good idea -- the first online exchange between lenders and borrowers -- but there naturally hasn't been much of an appetite to underwrite new home loans in this morbiund market. That's starting to change, now  that mortgage refinancing rates have become too ridiculously low to ignore, and I suspect the housing stimulus will bring even more business LendingTree's way.

Mortgage lenders busy after Obama plan laid out
Reuters
Julie Haviv
Feb 10, 2009
The telephones have been ringing off the hook at U.S. mortgage lenders since President Barack Obama pledged $275 billion on Wednesday to help stem a wave of foreclosures. "Yesterday, LendingTree.com had the highest loan request volume day for the month showing that borrowers did indeed feel encouraged by Obama's housing plan," said Cameron Findlay, chief economist for the online loan network in Charlotte, North Carolina....Refinancing volume at LendingTree.com was up 88 percent week-over-week Wednesday, while loan requests for new home purchases were up 30 percect during this time.

New mortgage fee matrix real doozy
Chicago Tribune
Mary Ellen Podmolik
Feb 06, 2009
Auto insurance premiums are based on risk. Increasingly, so are mortgage interest rates.  For a while now, Fannie Mae and Freddie Mac have basically credited the best borowers and added extra fees to those the agencies considered more risky.  The amount of the credit - or in most cases the fee - was calculated based on a borrower's credit score and the loan-to-value ratio.  The latest matrix of fees from Fannie Mae, which takes effect April 1 but is already being factored into much of the new business written, is considered a doozy by lenders. Freddie Mac last week issued its own set of new or revised delivery fees that is similar to Fannie's...."It's going to be significant," said Cameron Findlay, chief economist for LendingTree.com. "Most of the banks are already getting in front of that agency change and changing rates."

Tree.com Acquires Mint Competitor Thrive
TechCrunch.com
Robin Wauters
Feb 06, 2009
New York-based Loudwater Labs has sold assets of its online personal finance management application Thrive to Tree.com (NASDAQ: TREE), the company behind services  such as the formerly IAC-owned LendingTree and RealEstate.com. This means that the  publicly listed Tree.com now has a very good resource in its hands as well as suggicient reach to give Mint and other personal finance management tools like Wesabe, Geezo and Buzfer a good run for their money.

Mortgage Rate Trend Index
Bankrate.com
Feb 05, 2009
This week (Feb. 5 - Feb. 11) the experts say: Rates are probably headed down.

The opposing forces of Treasury debt issuance from the Fed (yields increase) versus the threat of Fed intervention (forcing yields lower) is a tug of war. Which side is expected to win? Clearly that seems weighted based on teh volume of debt issues to come. We can alla gree the Fed target is not going higher. But the Fed target isn't going any lower either.  This boundary will allow the fiscal stimulus debt issues to create a meaningful impact on Treasury yields as the bond market sells off. The magnitude of the sell-off will be restricted. I don't expect the Fed to allow 10-year Treasury to rise above 3 percent.

Cameron Findlay, Chief Economist,  LendingTree.com, Charlotte, N.C.

Mortgage Rate Trend Index
Bankrate.com
Jan 29, 2009
This week (Jan. 29 - Feb. 4) the experts say: Mortgage rates might move even lower.

Rates to borrowers clearly have a ceiling in this market. As expected, just as the debt isuses have driven yields higher over the past week, speculation that the Fed will step in and start buying Treasuries again has driven yields lower. The most important element of the next few days is the mix of tax cuts or spending programs that will be enacted by President Barack Obama. Both have different implications for borrower interest rates. But don't be fooled. A fiscal stimulus spending may not be the most efficient manner of improving consumer sentiment, as opposed to a tax cut that may be felt sooner.

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

Mortgage Rate Trend Index
Bankrate.com
Jan 22, 2009

This week (Jan. 22 - Jan 28) the experts say: Rates are likely to remain flat. 

Mortgage rates have been range bound for the past few weeks (between 5 percent and 5.5 percent -- assuming 1 point).With refinance volume booming, the Fed should start yielding the results of lowering rates to historic levels. Expect a temporary pause in price declines and a reduction in the excess inventory in part stimulated through a reduction in delinquenceis. This suggests we have not yet seen the bottom of the home price declines, now expected to be reached in the first half of 2011. Also, the new FNMA guidelines taking effect April 1 will have a significant impact on not only rates but the  psychology of the market. - RATES UNCHANGED

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

Not everyone can refinance to cut mortgage payments
USA Today
Sandra Block
Jan 15, 2009
The average interest rate for a 30-year mortgage dipped below 5% this week, a level not seen since the Eisenhower administration. Not surprisingly, homeowners are scrambling to commemorate the historic event by refinancing their mortgages.  There's just one problem: In this credit-starved environment, even a five-star general might have trouble qualifying for a new mortgage. If you're interested in refinancing, here's what you'll need:

Excellent Credit. To get the lowest rates, you'll need a FICO credit score of 720 or higher, says Cameron Findlay, chief economist  for LendingTree, a loan-comparison web site.

Mortgage Rate Trend Index
Bankrate.com
Jan 14, 2009

This week (Jan. 8 - Jan. 14) the experts say: Rates are likely to head lower.

Despite mortgage spreads starting to widen again to more than 140 basis points (FNMA current coupon vs. National Average Note Rate), I expect note rates will not cave and decline any further as the market is indicating. With further stimulus packages being discussed, expect a mortgage market rally (including lower rates) to result in thin trading in lower coupon supply products, meaning more market volatility in pricing. We expect trading to remain in a range between 5 (percent) and 5.5 percent (current note rate average at 5.33 percent, 30-year fixed-rate mortgage). - RATES UNCHANGED

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

Mortgage rate relief might not last long
Reuters
Julie Haviv
Jan 08, 2009
Massive efforts by the Federal Reserve to bring down mortgage rates have  so far been a success, but homeowners had better act fast because analysts record low rates could be gone as soon as this summer....Cameron Findlay, chief economist at LendingTree.com in Charlotte, North Carolina said mortgage rates at 4.50 percent remained possible, but not probable.  "For now the Fed has implemented change to entice rates to decline and are in a holding pattern to see the impact," he said. "Up until a few weeks ago, people thought 4.50 percent was a realistic target for rates within 60-90 days, but that idea has dissolved," he said.

Mortgage Rate Trend Index
Bankrate.com
Dec 17, 2008

This week (Dec. 11 - Dec. 17) the experts say: Rates are unlikely to rise. They'll fall more or stay about the same. 

Given the rapid shift in rates, the propensity of another of any magniture is limited (this takes into consideration the anticipated 75-basis point decline in the Fed target (rate) scheduled on or before the 16th). For borrowers, simply consider that rates are currently 140 (basis points) lower than the average over the last five years, so taking advantage of this during the eye of the storm is a good move. - RATES UNCHANGED

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

Average Mortgage Rate Hits 5%, Lowest in Decades
The New York Times
Tara Siegel Bernard
Dec 16, 2008
The Federal Reserve's plan to coax mortgage rates lower is working: rates on 30-year fixed loans fell for the 10th consecutive week to the lowest levels in decades, according to a recent Freddie Mac survey. What is not clear, however, is whether rates are attractive enough to lure a significant number of home buyers back into the ailing housing market. ..."Refinance activity continues to be strong, but purchase inquiries are relatively static," said Cameron Findlay, chief economist at LendingTree.com.

The end of the 0% down payment
MSNMoney.com
Liz Pulliam Weston
Dec 15, 2008
Mortgage lending has changed dramatically in so many ways, but one of the most critical developments for homebuyers has to do with down payments.  Now you need one....If you can scrape up at least 10% of a home's purchase price, your options improve quite a bit, said Cameron Findlay, the chief economist at mortgage quote site LendingTree.com. You'll find more lenders competing for your business, which can mean lower rates and lower fees, Findlay says.  You also start the game with at least a little equity. Yes, that could be wiped out if real estate in your area continues to tumble, but at least that wouldn't happen as fast as it would had you bought with less money down. You'll still have to pay private mortgage insurance because you aren't putting 20% down. The annual premium of 0.52% would add $87 to your monthly payment for a $200,000 loan, for a total of $1,217.81.

A spark of life for real estate
Charlotte Observer
Kirsten Valle and Nancy Stancill
Dec 09, 2008
In a development cheered by mortgage brokers, interest rates have dipped to their lowest levels in years, providing what some say is a glimmer of hope in this dismal housing market. Brokers across Charlotte have seen a spike in business since Nov. 25, when the Federal Reserve announced plans to buy up to $600 billion in toxic mortgage assets. The move prompted interest rates to fall - to around 5.5 percent this week - and that could translate to lower monthly payments and an incentive for home shoppers who are debating whether to buy...At LendingTree.com, inquiries are up 10 to 15 percent in the past two weeks, chief economist Cameron Findlay said. Much of that interest is for refinancing, especially from borrowers with adjustable-rate mortgages who want the stability of a fixed rate.

Mortgage applications surge by record amount
Reuters
Julie Haviv
Dec 03, 2008
Mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest leven in more than 3 years, data from an industry group showed yesterday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended November 28 soared a record 112.1 percent to 857.7, the highest reading since the week ended March 21 when it reached 965.9.

...Cameron Findlay, chief ecnomist at LendingTree.com based in Charlotte, N.C., said they are seeing a positive uptick in refinancing volume due to the drop in interest rates.  "Consumers who were previously on the fence to refinance or purchase a home are in a position to take advantage of the decline in rates," said on Tuesday. "Now it'll be a matter of qualification as lenders evaluate each borrower," he said.

Mortgage Rate Trend Index
Bankrate.com
Dec 03, 2008

This week (Nov. 27 - Dec. 3) the experts say: Rates will fall even more.

Sustained infusion by the Fed directly into primary capital markets is designed to force banks to lend, as opposed to expecting them to lend and instead having them use the cash to pay dividends or as part of share repurchase programs. Bernanke and Paulson (are) being creative in their solutions to proactively create a disired outcome. Each time a new program is created, think of it as fishing with new types of bait. They are waiting to see which bait hooks banks to begin lending again. - RATES DOWN

Cameron Findlay, Chief Economist, LendingTree.com, Charlotte, N.C.

Rates are falling. Time to refi?
Bankrate.com
Holden Lewis
Nov 27, 2008

The week's abrupt drop in mortgage rates will provide an opportunity for some borrowers to refinance. But a large-scale refinancing boom is unlikely.

..."The issue to actually pulling the trigger and getting the mortgage done is less a matter of rates and more of qualification," says Cameron Findlay, chief economist for LendingTree.com

U.S. Consumer Loan Aid Will Trickle Only So Far
The New York Times
Ron Lieber and Tara Siegel Bernard
Nov 27, 2008
If you're planning on buying a home, refinancing a mortgage or seeking an auto or student loan, the new government plans to make borrowing cheaper and easier sound like a gift.  One problem, however, is that whole categories of people may be ineligible. If you are refinancing, you could be out of luck if your mortgage balance is more than your house is worth.  And for the kinds of new loans, lenders have raised their standards even as their customers' credit records are deteriorating because of late payments and other problems....Lower rates will certainly help some consumers qualify for mortgages who may not have otherwise; lower rates translate to lower payments...."At the end of the day, it still comes down not to just a rate discussion, but a discussion about qualifications as well," says Cameron Findlay, chief economist at LendingTree.  "There are fundamental elements of qualifications for loans that will inhibit the ability of this program to have any meaningful, significant impact."

Mortgages head down
MarketWatch.com
Amy Hoak
Nov 26, 2008
The 30-year fixed-rate mortgage droppped below 6% on average this week, a seven-week low for the mortgage, according to Freddie Mac's weekly survey, released on Wednesday. The mortgage averaged 5.97% for the week ending Nov. 26, fown from last week's 6.04% average. The 30-year mortgage averaged 6.10% a year ago; it hasn't been lower since Oct. 9, when it averaged 5.94%.

...The Freddie Mac survey averages over a week. But Tuesday's Federal Reserve announcement that it would purchase up to $100 billion in direct debt of Frannie Mae, Freddie Mac and the Federal Home Loan Banks, along with up to $500 billion of mortgage-backed securities by Fannie, Freddie and Ginnie Mae, caused a substantial fall in rates. ...That's good news for consumers in the weeks and months ahead, said Cameron Findlay, chief economist for LendingTree.com. "Rates are going to be kept low.  I don't think you will see a slingshot back up," he said.  For people who want to refinance, the current rates signal a great opportunity, Findlay said.  Still, the challenge for many people interested in refinancing an existing loan has been qualifying for that new mortgage as home prices decline and underwriting remains strict, he added.

Mortgage Rate Trend Index
Bankrate.com
Nov 20, 2008

This week (Nov. 20 - Nov. 26) the experts say: Rising rates are just as likely as falling rates.

With most manufacturing indexes all point towards a downward revision in their capacity and their production output, it's clear equities are going to be forced down.  As equities decline, expect bonds to rally and mortgage rates to continue to fall, helping borrowers.  This sounds like good news, but the larger concern will be the impact this has on unemployment and continued downward pressure on wages, which are both fundamental to the recovery. - RATES DOWN

Cameron Findlay, Chief Economist, LendingTree.com, Charlote, N.C.

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