Online Mortgage Information

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Online Mortgage Information

• Presented by
• Abbas Merchant
• Asnee Wipatawate
• Suppasri Changariyavong

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Value Chain
Online Mortgage Originator
Mortgage Lender
Home Buyer
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How do they make money ?

• Margin from lenders rate
• Membership fees from participating lenders
• Advertising banners

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HomeShark.com

• Discount broker
• Information center
• Strategic Alliance
• 21 Participating banks
• Portal sites Snap.com
• Real-estate service

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QuickenMortgage

• Part of Quicken.com and Intuit Inc., 1 in
  personal finance software
• Did not have off-line mortgage business, but went
  straight to on-line.
• Strategic Alliances
• Portals Excite, AOL
• 17 mortgage lenders
• Real estates ImproveNet, CyberHomes

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E-Loan

• Started from off-line mortgage originating
  business, then moved to on-line version.
• Strategic Alliances
• Portal Yahoo
• 40 lending banks
• Others IBM, Telebank, E-Trade

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On-line mortgage cannot replace human in

• Handling legal paper work
• Answer questions and council on a real-time basis

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Advantages

• Low rates than off-line
• Ability to compare rates easily
• Ability to updates rates easily
• Ability to search vast amount of database
• Time saving
• Money saving

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Management Issues

• Intense Competition
• Pricing Pressures.
• Timing and amount of future Internet-related
  revenue and profits.
• Regulation in mortgage lending.

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Recommendations

• Increase the number of participating lenders
• Customer Service
• Provide personalized services such as loan status
  tracking, loan consultant, etc.
• Ally with other famous web sites and portals.
• Increase brand recognition by advertising their
  brand names off-line through such channels as
  radio, magazine, newspaper and TV.