Industry News

E-Loan borrowers say yes to outsourcing

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Consumer direct lender E-Loan is getting in the middle of a hot political and economic debate: outsourcing, is it good or bad for the American economy? E-Loan decided to let its customers choose whether they want their home equity loans processed in India or the U.S. So far, about 86 percent of those borrowers chose to ship their loans overseas for speedier service. Lenders are looking at India as a way to stay competitive in anticipation of a shrinking mortgage refinance market. Call centers in India offer an opportunity to cut costs and speed up loan processes. Home equity loans processed in India close two days faster than those that stay in the U.S., according to E-Loan, which provides mortgage, auto, credit card, home equity and business loans exclusively over the Internet. But E-Loan CEO Chris Larsen said the program isn't just about efficiency. The initiative has a lot to do with disclosing the practice of outsourcing to consumers and allowing them to decide for themselv...