|E-LOAN, Inc. Renews Mortgage Warehouse Lines
E-LOAN's Combined Mortgage Warehouse Lines Total $350 Million
DUBLIN, CA (April 2, 2002) -- E-LOAN, Inc. (EELN) , a leading online lending company, today announced it has renewed its $300 million warehouse line of credit with Greenwich Capital Financial Products through March 21, 2003. E-LOAN also announced it renewed a $50 million warehouse line of credit with Warehouse Bank, a unit of GMAC Bank, through March 31, 2003. The lines of credit are available for borrowings for interim financing of mortgage and home equity loans and are collateralized by E-LOAN's mortgage and home equity loans held-for-sale. E-LOAN uses warehouse credit facilities to fund its mortgage and home equity loans prior to their sale to capital market loan purchasers, which typically occurs within 30 days of funding.
"Using warehouse lines to fund mortgage and home equity loans enables us to eliminate costs by surpassing retail and wholesale channels, which translates into better margins for E-LOAN and lower costs for our customers," said Joe Kennedy, E-LOAN's President and Chief Operating Officer. "These renewals are further evidence of the strong, long-term relationships we have with our mortgage warehouse line providers."
E-LOAN also announced the extension of its Bank One line of credit available for the interim financing of auto loans through July 31, 2002 at $10 million. Bank One has indicated that they are exiting this component of their lending business, and therefore E-LOAN will replace them with a new lender prior to expiration. E-LOAN uses credit facilities to fund its auto loans prior to their sale to capital market loan purchasers, which typically occurs within 10 days of funding.
"We are in active discussions with multiple lending providers, and believe that we will be successful in securing an alternative source prior to expiration of the current facility," said Matt Roberts, E-LOAN's Chief Financial Officer.
|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 and auto loans in a secure online environment, combined with comprehensive personal service from dedicated loan consultants. Through the fourth quarter of 2001, E-LOAN originated over $7.3 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.
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.