|E-LOAN on Track for Record Quarterly Home Equity Loan Volume
Home Equity Closed Loan Volume Expected to Increase 60% Over Prior Quarter
9 Out of 10 Customers Rate the Quality of E-LOAN's Service as Excellent Or Very Good
DUBLIN, CA (June 6, 2002) -- E-LOAN, Inc. (EELN) , an online lending company, today announced that it is on track to achieve record quarterly home equity loan volume in the second quarter of 2002. Home equity closed loan volume in the second quarter is expected to reach $138 million, an increase of approximately 60 percent over the prior quarter. This growth is in line with the assumptions for home equity in our financial guidance for the current quarter provided on April 25, 2002.
"This strong growth in our home equity business demonstrates that we're making very good progress in executing our diversification strategy," said Joe Kennedy, E-LOAN's President and COO. "Equally exciting is that our most recent customer survey results are excellent. Our combination of instant decision technology, electronic document delivery, automated appraisals, and mobile notary service has translated into overwhelming customer enthusiasm. Customers are telling us that they'll come back to E-LOAN for their future lending needs and that they'll tell their friends about the great service they received."
The home equity market is substantial and growing at a rapid pace. In 2001, home equity originations grew 15 percent to $422 billion. In 2002, home equity originations are expected to grow 20 percent to over $500 billion.
As property values rise, consumers' homes provide them with a greater investment to borrow against and a more efficient way to manage their debt. 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 E-LOAN's home equity business. Underscoring this growing consumer trend is E-LOAN's most recent customer survey results, which show that nine out of ten home equity customers:
- Rate the quality of E-LOAN's service as "excellent" or "very good."
- Say that they're "very likely" or "likely" to recommend E-LOAN's service to a friend.
- Say that they feel it was advantageous to complete their home equity transaction online.
The following table is designed to help investors understand E-LOAN's approximate per loan economics on its home equity loan business.
Approximate Per Loan Economics