Google eyes mortgage lending service
LendingTree sues vendor Mortech
By Matt Carter, Thursday, August 27, 2009.
Google is planning to launch a service in late August or early September that would provide Web surfers with loan offers from mortgage lenders, according to a lawsuit by LendingTree that seeks to stop the project in its tracks.
LendingTree filed suit Tuesday against Mortech Inc. -- the company that provides the "pricing engine" lenders use to generate loan offers through LendingTree -- saying the company is barred from providing the same services for other companies.
In its complaint, LendingTree claims that Mortech agreed to make its pricing engine available for use for Google's loan aggregation service. Lending Tree said it had obtained screenshots of a trial version of the new service.
Attorneys for Mortech have not yet responded to the lawsuit, filed in the U.S. District Court for the Western District of North Carolina.
In a statement, Mortech did not deny working with Google, but said the company "has a proven track record of treating all industry partners and customers with absolute respect and consideration."
Mortech said it would deal with the lawsuit "in a responsible, forthright and timely fashion while upholding our commitment to supporting our customers' success."
LendingTree says it has a confidentiality agreement with Mortech, dating to April 2008, that prohibited both parties from disclosing to a third party information treated as "confidential, proprietary or a trade secret."
The agreement was amended to limit Mortech's ability to make its pricing engine services available for use with other online loan aggregators, LendingTree said.
Subject to "a limited exception," LendingTree said Mortech agreed it would "not post or otherwise provide data associated with an offer for a loan product directly to any online loan aggregator."
In return, LendingTree said it gave up some payments it was owed by Mortech under the original agreement, and promised to offer its customers Mortech's product, pricing, lead management and eligibility solutions when providing such services. ...CONTINUED
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Submitted by Larry Whited Sr. on August 28, 2009 - 4:39am.
Competition is a beautiful thing. Sounds like many attorneys will profit from this convoluted complaint.
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** Virtual Is the Future **
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Joe Loomer on August 28, 2009 - 8:32am.
Let me see if I get this straight:
"In return, LendingTree said it gave up some payments it was owed by Mortech under the original agreement, and promised to offer its customers Mortech's product, pricing, lead management and eligibility solutions when providing such services. ..."
OK, Mortech owes Lending Tree money, they don't get fired for not paying, and in fact EXPAND their role with LendingTree?
Maybe it's because my education came primarily from Uncle Sam via the United States Navy, but if it walks like a duck....
Augusta GA Homes
Joe Loomer, USN Ret.
Associate Leadership Council, Growth Chair
Keller Williams Realty Augusta Partners
Submitted by (Fort Worth Real Estate Guy) on August 31, 2009 - 4:06pm.
Competition is a beautiful thing, Yes they have to change the way they do things and adjust.
Mike Pannell
Nu Home Source Realty LLC
817-509-1400
http://www.nuhomesource.com
http://www.nhsfortworth.com
http://www.nhsdallas.com
Submitted by Bart Wilson on September 1, 2009 - 7:51am.
I agree with Larry Whitted. Competition is a good thing. Helps keep the Lead Sharks on their toes.
Disintermediation is what we need. Not more of it.
Years ago, banks, including Lending Tree, Wells Fargo, Bank of America and countless others sandwiched themselves in between broker-agents and the end customer.
How many of us are happy getting a phone call from homeGain with a qualified prospect only to be asked for 25% of our sales commissions?
It's hard enough to be a REALTOR these days, and more competition will certainly help drive down the cost of getting good solid leads and hopefully (in my humble opinion) eventually destroy the 25% lead shark mentality of firms like HomeGain and others.
Bart Wilson
Founder & CMO
Voyager International
http://www.Voyager360.com
Submitted by Moshe Cohen on September 1, 2009 - 5:18pm.
http://www.valuationsolutions.net
NJ Tax Appraiser
Keep in mind that these services are not free. The price for these leads is high and the borrower ends up paying for them.