Lending Tree Comparison

Taking A Closer Look At LendingTree
What you get versus what you pay for…

LendingTree is an internet application giant and they have done so by selling data to its fullest. Each application they collect will sell multiples times. LT will then sell that data, to realtors, title companies, appraisers, attorneys, moving companies, insurance agents, and so on... Customers who apply on LT get inundated with phone calls from everyone imaginable.
When you decide that you might like to participate in LT’s network you must first go through a review process. There is a 2 week application review process where by after collecting all of your data LT will make a decision if you company is the right fit for their model.They request that you submit all of your annual funded volume information , investors, references, tax ID information, number of loan officers and your standing with the BBB and Banking Departments are all taken into consideration before they are willing to even email or call you back. If you are accepted into their lender network, you are closely monitored to make sure you are being compliant with the LT system and track all of your funded loan volume so they can take their huge referral fee. LendingTree Local Lender costs include the following:
  • Transmit fee for each lead (Varied based on lead volume and commitment)
  • Closed loan fees on each loan ranging from $400 - $1,000 off the top.
  • Pay LendingTree a set-up fee of $10,000 and a $5,000 security deposit.
    • All invoices for set up fee, security deposit, transmit fees and closed loan fees will be paid upfront. There is no billing and no ‘terms.’’
  • You must commit to a high volume of lead purchases on a contract basis.
  • You must make offers to all of your leads online based on the information they provide, before you contact them. Failing to do so may affect your contract with LT.
  • Poor lead return policy: LT is not responsible for validating any of the lead data or customer errors. If you do submit a lead for return, review for credit takes a while.
  • Uses gimmicks, spam, and ‘free’ offers such as gift card's, free credit reports and home evaluations to entice applicants to apply.
  • Lenders/Brokers are ranked by company size, volume and are then rated by consumers based on their experiences. This is detrimental to your campaigns success with LendingTree. If you are a smaller operation organization, not able to lend nationwide or you get a bad review from an angry or misled customer not happy with the LT process you could destroy you entire campaign. All of this information is available to the consumer on the LT website prior excepting your offer.
LendingTree conversion ratios of applications to funded loans are typically 8%This is a lot of work and aggravation and not a very good ‘ROI’, not to mention your overall cost per lead with LT after all of their fees is the highest in the industry. These numbers indicate that not even 1:10 leads will close; (0.80%) to be exact. Are these the types of results you are looking for? All of this hassle and cost is not because their lead quality is great but to make sure you are worthy of servicing their applicants. I am sorry that I don’t know the exact numbers; however, there are an enormous percentage of lenders that go through all the hassle to sign up with LT and cancel as soon as their contract is up. If you were to look online you would fine a slew of unhappy people with negative experiences. Is LT all bad all the time? No. it serves its purpose for large lending giants, with tons of money to spend on its’ marketing efforts. It is also important to have LO’s who are highly training in online/internet lending and know all the tricks behind competing on LT… Fact of the matter is there is a lot of lying and bait and switching that goes on and if you don’t know how to combat other LO’s shady practices you will fail. There is no lead provided who has the perfect application every time, however, make sure you choose a lead aggregator who puts your best interest at heart. Invest your wisely and get your maximum return on your investment. You can do this by working with a lead aggregator who verifies their leads and doesn’t sell your data to 4-5 other lenders and take huge percentages of your commission on every loan.

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