Why I recommend not using online lenders

by John Wake on July 10, 2007

NovaStar Home Mortgage Inc. and two other lenders accused of engaging in bait-and-switch tactics on the online mortgage-lead-generation site Bankrate.com have been hit with a $46 million judgment.

Without admitting fault or liability, Bankrate in October agreed to pay American Interbanc $3 million to settle allegations that the company did little to prevent lenders from engaging in bait-and-switch tactics.

{ 5 comments… read them below or add one }

1 dan 07.10.07 at 2:19 pm: I disagree. I love playing one lender against another. I am amazed at mortgage people who are surprised that I am shopping around the country looking for the best rate and lowest closing costs. Obviously, a lot of you are walking into the nearest Wells Fargo, and excepting their “best” offer………
2 Russ 07.12.07 at 1:40 pm: I found E-loan to be excellent. This is a good source on the subject:

http://www.mtgprofessor.com/upfront_mortgage_lenders.htm
3 NM real estate 07.13.07 at 10:34 am: I think I agree with the article, they provide a valid arguement.
4 Louisville KY real estate 07.13.07 at 12:38 pm: I also agree with the author. You need to shop around for anything - a car, a home, a loan.
5 John L. Wake - Realtor 07.18.07 at 7:01 pm: Also Ameriquest was huge online and got into trouble with the law.