E-LOAN Unveils Instant Online Decisioning for Home Equity Loans

Business Wire, Dec 18, 2000

Business Editors

DUBLIN, Calif.--(BUSINESS WIRE)--Dec. 18, 2000

Instant online decisions and mobile notary service provide consumers

with a faster and more convenient way to get a home equity loan

[pilcrow (paragraph sign)] E-LOAN, Inc. (Nasdaq:EELN) (www.eloan.com), a leading online lending company, today unveiled instant online decisioning and mobile notary service for home equity loans, providing customers with a faster and more convenient loan process.

Unlike the traditional home equity loan process which typically takes at least a month from start to finish, E-LOAN customers will get an online decision within a minute, enjoy the convenience of a mobile notary service and automated appraisal valuations -- eliminating the need for a physical appraisal -- and receive their loan funds in as little as ten business days. And like E-LOAN's other mortgage customers, home equity borrowers will benefit from no lender fee pricing(1). Home equity customers will receive the same high-level of personal service that E-LOAN's mortgage and auto customers do -- a single point of contact from the beginning to the end of the transaction.

"For most consumers their home is their largest single asset," said Joe Kennedy, E-LOAN's President and COO. "As real estate values rise, we understand the importance for consumers to be able to easily and quickly leverage the equity in their home, particularly for home improvement or debt management purposes like credit card consolidation. This expansion enables us to build our customer base while providing consumers with a simpler, more convenient way to get the debt management products they need at the most competitive rates available."

Over the past five years, consumer lending in the national home equity sector has grown at an annual rate of 15 percent(2). As property values rise, consumers' homes provide them with a greater investment to borrow against and a more efficient way to manage their debt. In addition, the interest on home equity loans may be tax deductible(3), making debt consolidation less expensive than other consumer loans such as credit cards and personal loans. Greater consumer awareness to the benefits of home equity loans and the growing trend of consumers to obtain a loan online validates the growing market opportunity for home equity lending.

"As the home equity sector continues to expand and consumers become more aware of this kind of financing opportunity, E-LOAN provides consumers more convenient and lower cost way for them to take advantage of this type of loan product," said Steve Majerus, E-LOAN's Vice President of Capital Markets and head of home equity lending. "By streamlining the loan process and managing the consumer experience from beginning to end, we ensure that the consumer receives the best service every step of the way."

At E-LOAN, consumers can first shop for rates without entering any personal information. When they're ready to apply, consumers can quickly and easily complete an application and receive a decision within a minute. Once approved, a personal loan consultant contacts the customer within the hour to confirm the loan. In addition, E-LOAN offers a mobile notary service to ease the legal and logistical burden of closing the loan by enabling the customer to certify the documents anywhere at anytime. Once the customer receives their check, they can use it for whatever purpose they choose, such as debt consolidation, college tuition or home improvements.

Borrowers can also take advantage of other E-LOAN home buying related services such as No Lender Fee Mortgage Loans and E-LOAN Express, a faster, easier mortgage product that dramatically improves the customer experience by eliminating unnecessary steps, costs and documentation requirements.

About E-LOAN, Inc.

E-LOAN, Inc., a leading online lending company, offers consumer loans and debt management services online at www.eloan.com. E-LOAN has reinvented the consumer loan process by offering consumers an easier, more affordable and hassle-free way to get a loan. E-LOAN offers a broad choice of products from many lenders for mortgages, home equity loans, auto loans, credit cards and small business loans in a secure online environment, combined with comprehensive personal service from dedicated, unbiased loan consultants. Through the third quarter of 2000, E-LOAN originated over $3.1 billion in consumer loans. The company's loan processing centers are located in Dublin, CA and Jacksonville, FL. E-LOAN, Inc. is publicly traded on the Nasdaq system under the symbol EELN.

This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. E-LOAN, Inc. actual results may differ from the results described in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, general conditions in the mortgage industry, interest rate fluctuations, and the impact of competitive products. These and other risk factors are detailed in E-LOAN Inc.'s periodic reports and registration statements filed with the Securities and Exchange Commission.