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(Source:SEC filing)
E-LOAN's easy-to-use website enables borrowers to search through over 50,000 products provided by over 70 lending sources to find the most competitively priced loans that match the borrowers' criteria.....
...E-LOAN is the exclusive mortgage provider for loan centers that E-LOAN has established with leading websites including Yahoo!,E*Trade, DLJdirect,Telebank and CBS MarketWatch.........
We consider our distribution partnerships with Yahoo!, E*Trade and DLJdirect to be the mostcritical to our success. During the year ended December 1998, approximately 13% of our closed loans were derived from a website that we operate with Yahoo!, and during the first quarter of 1999, approximately 14%, 2% and 1% of our closed
loans were derived from the websites we operate with Yahoo!, E*Trade and DLJdirect, respectively. In the aggregate, approximately 18% and 22% of our closed loans were derived from the websites of our distribution partners in 1998 and the first quarter of 1999. Our agreements with our distribution partners are typically short-term, from one to three years in length, and can be terminated for any reason upon 30 to 60 days prior written notice.....
E-LOAN licenses its mortgage loan origination systems and proprietary marks to NetB@nk to enable NetB@nk to fund mortgage loans under the E-LOAN brand in eleven states, and has agreements with PHH Mortgage Services Corporation and Prism Mortgage Company relating to the fulfillment of all aspects of loan transaction processing following origination in five states. Each of these agreements may be terminated by either party upon 30 days prior written notice. The termination of any or all of these agreements could have a material adverse effect on our business.....
We depend on GE Capital Mortgage Services, Inc. and Bank United to finance our internal loan funding activities through the warehouse credit facilities provided by each of these lenders. We also depend on Greenwich Capital Financial Products, Inc. to finance portions of our mortgage loan inventory pending ultimate sale to mortgage loan purchasers. If either of our warehouse credit facilities becomes unavailable or our relationship with Greenwich Capital is terminated, our business would be adversely affected. Under our agreements with each of these partners, we make extensive representations, warranties and various operating and financial covenants. A material breach of these representations, warranties or covenants could result in the termination of our agreements and an obligation to repay all amounts outstanding at the time of termination. In the past, we have had to obtain waivers from Greenwich Capital and GE Capital as a result of our failure to comply with covenants regarding the issuance of capital stock, excess asset purchases and the breach of financial ratios.
Our agreement with Greenwich Capital expires in April 2000, our agreement with GE Capital expires in April 2000 and our agreement with Bank United expires in February 2000. Our agreement with GE Capital can be terminated at any time on 120 days prior written notice. We are continually seeking to obtain additional warehouse lending resources, but we may not be successful in this regard.....
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