NDE - research notes
NDE:
Within five minutes of completing a brief application, a customer can receive a final "credit verified" approval, a personalized list of documents required to close the loan, and a "custom-fit" interest rate that can be locked in immediately, and all without human intervention, unless requested by the consumer.
Compare to E-Loan (quoted from eloan.com FAQ):
"You can request a rate lock after you have returned your package to E-LOAN and we have reviewed your documentation and credit information. We will notify you via e-mail when you are able to request a lock"
Comment: Doesn't sound like 5 min. to me.
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"This technology has the potential of completely altering the way we do business in the mortgage industry," said Garg (Exec VP and Director of e-Mits). "With e-MITS.com installed in their computers, brokers can submit loans to us electronically from virtually anywhere in the world, any time of the day or night. If they want to get a loan approved at 2 a.m., they can, even after the traditional rate-lock desk is closed. In addition, e-MITS.com provides the broker with a list of documents that need to be collected for each loan. And because e-MITS.com streamlines documentation for borrowers with good credit, submitting these loans through e-MITS.com automatically saves time and cuts unnecessary paperwork." Brokers can also run product/pricing scenarios instantly and obtain credit reports on-line at a preferred rate.
e-MITS.com also reduces processing time at loan closings by delivering documents electronically through the Internet. As Garg explains, "In today's environment, it takes anywhere from 2 to 5 days to deliver loan documents to the escrow company. e-MITS.com reduces that time to literally seconds.
Comment: e-Mits leverages true power of the Internet - real-time pricing, unprecedented speed, scalability, and the ability for 24-hr business generation. Per Q2 press release, loans funded through e-Mits.com now at $2 billion run rate and soaring.
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Rates featured on Eloan's main webpage are 0.25 to 0.125 points lower than on Loanworks' main webpage. This could partly explain why loanworks.com's sequential loan volume declined slightly. Advertising needs to be increased sharply, and soon. In my opinion, market share is more important than profitability in an early market, and market valuations clearly demonstrate this time and time again.
Philip
Disclaimer: Invest at your own risk. Information provided for discussion purposes only and not to be considered investment advice. Although I've tried to gather accurate information, the information in this article and the analysis contained therein is NOT guaranteed to be accurate. Do your own research.
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