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E-LOAN Expects to Report Record Mortgage and Home Equity Direct Margin In Third Quarter 2001

E-LOAN's Low-Cost Producer Strategy Is Paying Off

DUBLIN, Calif., Sept. 24 /PRNewswire/ -- E-LOAN, Inc. (Nasdaq: EELN), a leading online lending company, today announced it expects to report record mortgage and home equity direct margin in the third quarter of 2001. E-LOAN's direct operating margin is defined as revenue minus variable and fixed operations expense.

In the third quarter of 2001, E-LOAN expects mortgage direct margin to exceed 50 percent. This represents a significant improvement from the 41 percent direct margin reported in the second quarter of 2001.

Also in the third quarter of 2001, E-LOAN expects home equity direct margin to exceed 40 percent. This represents a significant improvement over the 21 percent direct margin reported in the second quarter of 2001. E-LOAN began funding home equity loans and enhanced its home equity product offering in December 2000.

``Clearly our low-cost producer strategy is paying off,'' said Matt Roberts, E-LOAN's Chief Financial Officer. ``We're enjoying very healthy margins while remaining extremely competitive on price. We now have a winning formula for attracting customers and ensuring a profitable, cash flow positive business.''

The following table is designed to help investors better understand E-LOAN's business model by providing an outline of the company's expected average per loan economics for both its mortgage and home equity businesses.

Per Loan Economics ($$)
                                                1st Mortgage       Home Equity

    Average Loan Size                              $222,000           $51,000

    Revenue excl. Int Income                         $3,200              $950

    Operations Expense excl. Int. Expense            $1,600              $570

    Direct Margin                                    $1,600              $380

       Direct Margin as a % of Revenue                  50%               40%

    Per Loan Economics (bps)

                                                 1st Mortgage      Home Equity

    Average Loan Size                               $222,000          $51,000

    Revenue excl. Int Income                         144 bps          186 bps

    Operations Expense excl. Int. Expense             72 bps          112 bps

    Direct Margin                                     72 bps           74 bps

       Direct Margin as a % of Revenue                   50%              40%
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 a broad choice of products from many lenders for mortgages, home equity loans, auto loans, education loans, credit cards and small business loans in a secure online environment, combined with comprehensive personal service from dedicated loan consultants. Through the second quarter of 2001, E-LOAN originated over $5.5 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 system under the symbol EELN.

This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. E-LOAN's 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 and auto industries, interest rate fluctuations, and the impact of competitive products. These and other risk factors are detailed in E-LOAN's periodic filings with the Securities and Exchange Commission.

E-LOAN Press Contact: E-LOAN Company Contact:
Laurie Logan Tiffany Kelley
Cosmo Public Relations Public & Investor Relations
415-652-3385 925-560-2614
[email protected] [email protected]

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