LendingTree, Inc. and CMSI Announce Unique Internet Lending Solution For Automobile Financing
Agreement Links LendingTree's Proprietary Technology to CMSI's
CreditConnection Network of Leading Automobile Lenders
CHARLOTTE, N.C., and ANNAPOLIS JUNCTION, Md., March 1 /PRNewswire/ -- LendingTree Inc., the online loan center, and Credit Management Solutions, Inc. (Nasdaq: CMSS), creator of the CreditConnection(R) network and service, announced today a strategic alliance to develop the first Web-based, end-to- end automobile financing process that links consumers to multiple lenders. or the first time, a consumer can apply for an automobile loan on the World Wide Web and receive decisions from multiple financial institutions in a matter of minutes.
The alliance sets a new standard for automobile financing by interfacing LendingTree's online loan center and proprietary filtering technology with CreditConnection's network of leading prime and non-prime automobile lenders. LendingTree's filtering technology matches a car buyer's credit request with appropriate lenders and allows these lenders to bid for a consumer's business. The CreditConnection network, which electronically transmits credit applications directly into a lender's loan origination system, will allow lenders to return decisions to the consumer in a matter of minutes.
In addition to promoting the new service directly from LendingTree's Web site, LendingTree.com, CMSI and LendingTree will enter into agreements which allow other Web content providers to use the LendingTree and CMSI technology to embed automobile financing within their Web sites. For example, automobile aggregators - Web sites that provide automotive information and services to consumers, or even automobile dealers - could now enable car buyers to apply for an automobile loan conveniently using LendingTree's and CMSI's technology. LendingTree and CMSI are already in negotiations with several major automobile aggregators and dealers about licensing the LendingTree-CMSI joint technology.
Large Growth Expected in Online Automobile Lending
The last few years have seen a tremendous growth in the number of automobile related sites on the World Wide Web. According to J.D. Power and Associates, approximately 5 million consumers, one-third of the expected new car buyers, are predicted to use the Internet to shop for a new car in the year 2000, up from 1.9 million in 1997. Killen & Associates predicts that 10% of all automobile loan applications will be taken online by 2000; 40% by the year 2005.
"CMSI is well recognized as the leader in providing technology to automate the vehicle financing process," says Doug Lebda, CEO of LendingTree. "Linking our technology to CreditConnection's vast lender network will enable LendingTree and CMSI to become the leaders in the field of online automobile financing."
Both Companies Provide Unique Technology
LendingTree empowers consumers nationwide to apply online for many different types of loans from multiple lenders - at no charge to the borrower. LendingTree originates hundreds of credit requests daily for mortgages, credit cards, home equity loans, auto loans, and several other loan types from its Web-based loan center, as well as through its relationships with Yahoo, priceline.com, and Snap!
"LendingTree's multiple-offer model is tremendously empowering for consumers," says Peter Leger, President and COO of CMSI. "For the first time, consumers have instant access to automobile financing on the Internet from multiple sources 24 hours a day, seven days a week." CreditConnection connects credit originators, such as automobile dealers, to the lenders with whom they have relationships. Today, CreditConnection dealers can communicate electronically with some of the largest financial institutions, finance companies and captive finance companies that provide automobile credit, including AmeriCredit; BancOne; Bank of America; Bank of Montreal; Key Bank; NationsBank; PNC; Wachovia; WFS Financial; GMAC, the captive finance company of General Motors; and NMAC, the captive finance company of Nissan Motors.
"Our lenders are looking for creative ways to originate quality automobile loans directly from the Web," adds Leger. "The LendingTree-CMSI partnership will help bring qualified borrowers to our lenders at a lower cost than traditional means. Our alliance will allow our lender and dealer customers to benefit from consumer traffic driven from automobile aggregator sites, dealer Web sites, Internet portals, and any other site related to automobiles or financing."
How the LendingTree-CMSI Solution Works
Car buyers simply fill out a credit request on the LendingTree.com Web site or any Web site that embeds LendingTree's credit request forms. Using LendingTree's unique filtering technology and CMSI's CreditConnection service and network, the credit request is automatically sent to the lenders that can provide the best loan based on the borrower's credit profile. The request is loaded directly into the lender's own credit origination system so that the lender can evaluate the request using their specific credit criteria. A decision is returned electronically to the consumer. Unlike other online financing options, which usually provide consumers with an offer from only one lender, customers can receive up to four offers within minutes using the LendingTree-CMSI technology and network. Lenders can even provide consumers with dealer referrals based on that customer's vehicle preference.
About LendingTree, Inc.
LendingTree, Inc., founded by Doug Lebda in 1996 and based in Charlotte, N.C., is the only place on or offline where a network of lenders bid for borrowers' business. Loan types include personal, auto, mortgage, home equity, debt consolidation, and credit cards. The company is led by a management team comprised of veterans in the banking, financial services and information technology industries. In addition, LendingTree has formed strategic partnerships with Yahoo, priceline.com, and Snap! LendingTree is an equal opportunity lender. Visit www.lendingtree.com or call 704-541-5351 for more information. |
