There used to be a big push by lenders to secure "customers for life." Not only did banks promote attractive mortgage programs, but they also targeted the same customers for checking and savings accounts, individual retirement accounts, credit cards, auto loans, wealth management advice and insurance services.
Now, with many borrowers upset with their present lender about home loan refinance problems, the warm-fuzzy, customer-for-life feeling has given way to a can’t-wait-to-escape attitude. Individual services seem to have their own promotions.
One of the more intriguing offerings used to lure more than mortgage borrowers came from E-Trade Mortgage, a subsidiary of E-Trade Financial.
It sought to add stock and bond investors and other financial services clients by rolling out a Mortgage on the Move Loan (MOTM) product that gave customers the option of taking their new loan with them — including a low-interest rate — to their next house. The program is no longer available because E-Trade no longer originates and keeps its own loans.