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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

    Average Loan Size                                $45,000


Gain on Sale $1,050
Interest Income 130

Expense (1)
Operations Expense 525
Interest Expense 70

Direct Margin (2) $585
% of Revenue 50%

(1) Operations expense is comprised of both fixed and variable expenses,
including employee compensation and expenses associated with the
production and sale of loans and interest expense paid by E-LOAN under the
warehouse and line of credit facilities it uses to fund home equity loans
held for sale.
(2) Direct margin is defined as revenue minus operations expense, which
includes variable and fixed expenses.
E-LOAN, Inc.

About E-LOAN, Inc.:
E-LOAN, Inc., an online lending company, offers consumer loans and debt management services online at www.eloan.com or 1-800-E-LOAN-22. E-LOAN has reengineered the consumer loan process by offering a broad choice of products from many lenders for mortgages, home equity loans, and auto loans in a secure online environment, combined with comprehensive personal service from dedicated loan consultants. Through the first quarter of 2002, E-LOAN originated over $8.5 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 National Market under the symbol EELN.

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