Last week I posted an article about the upcoming price increase by LendingTree and now there are some questions with regards to the posts accuracy. In fact there does need to be a little clarification.

Just for the record if I ever make a mistake or misquote information I will be the first or second in some cases to tell you that I was wrong.

So let me present the facts:

With regards to the closed loan fee and the information in question I said the following:

“Then you have the closed loan fee. This fee looks to have an average increase of about $200. This means a closed loan fee with the same loan parameters will go from about $700 to $875. (This implies a credit score of 620 t0 679.)” and a loan amount $350k and above.

I was actually given this info from a LT employee and it was wrong. I take blame for not rechecking the facts, however the actual amounts that I quoted are completely accurate for the parameters in the article. So the fact that the closed loan fee “went up an average of about $200″ is wrong, but the price of $875 is correct.

The rest of the article is completely correct. So the numbers and prices in the scenario that I showed you in the same article, which I will show you again, are correct as well.

LendingTree
cost per lead $65
success fee $850
conversion rate 6%
cost per fund $1,933
Monthly Volume 1,000.00
Number of Loans 60.00
Avg. Loan Size $360,000
Avg Points per loan 2%
Avg. Fee Income $7,200
Gross $432,000
LT Fees $116,000
Net $316,000
ROI % 272.41%

Typical Provider
cost per lead $30
success fee $0
conversion rate 3%
cost per fund $1,000
Monthly Volume 1,000.00
Number of Loans 30.00
Avg. Loan Size $360,000
Avg Points per loan 2%
Avg. Fee Income $7,200
Gross $216,000
LT Fees $30,000
Net $186,000
ROI % 620.00%

So fact is the closed loan fee did not go up. The fact also is that the increase to the Match Fee and the prices quoted in the article are accurate.

Not to deflect the inaccuracy of the previous post, but in many ways it doesn’t matter if they went up, down or sideways. The increase of the Match Fee is so much that it doesn’t matter if the they lower the closed loan fee or not. The numbers are still the same and you still need to convert LendingTree leads at 8% or higher to make sense.

Either way, I do want to apologize for misrepresenting the changes and I hope you can forgive me.

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