Truth and reconciliation

Channel surfing last night I stumbled on a LendingTree ad starring none other than the company's CEO, C.D. Davies. The gist of the spot was that it's a confusing time in the mortgage lending industry and that LendingTree is there to help you figure out your best options -- even if the best option is not to take out a loan right now.

A quick search at YouTube shows Davies is also the public face of a LendingTree Web video campaign. LendingTree has its own YouTube "channel" and Davies -- still in his rookie year as CEO after the unexpected resignation of Tom Reddin in May -- stars in seven shorts with  titles like "What's going on in the mortgage industry?" and "Why are loans harder to get?" My personal favorite: "How do you refinance an ARM?" (above).

LendingTree's YouTube channel links to a "Smart Borrower Center" at the company's Web site where consumers can get more advice.

LendingTree is raising the fees it charges for leads next month, in an apparent effort to weed out lenders who leave customers dissatisfied with the process of shopping for a loan online (see Inman News story).

Today Inman News looks at two online loan brokers, LoanInsights and BuySide Mortgage, who say they're also focused on customer satisfaction. Putting their clients into the best loan for them -- rather than the one that's most profitable for the lender -- will generate repeat and referral business, they say (see story).

With all the stories in the media about rising delinquencies and foreclosures (and some of the more questionable practices of some loan originators during the boom) many prospective borrowers are naturally going to be more wary. So pitching yourself as consumer-friendly makes sense.

Not that many borrowers were under the illusion that mortgage originators were always looking out for their best interests during the boom. With home prices soaring, many were just looking to finance deals as quickly as possible, regardless of whether they were getting the best loan terms.

Now, with tightened underwriting standards and the virtual disappearance of "affordability products" like 2/28 hybrid ARM loans, some borrowers may just be hoping to find somebody who can get them into a loan -- any loan.

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