Products
We currently report our revenues in two product categories: (i) mortgage products
and (ii) non-mortgage products. Non-mortgage products include auto loans, credit
cards, home equity loans, personal loans, reverse mortgages, small business
loans and student loans. Non-mortgage products also include home improvement
referrals, and other tools and resources, including credit repair and debt relief
services.
Mortgage Products
Our mortgage products category includes our purchase and refinance products.
We partner with lenders throughout the United States to provide full geographic
lending coverage and to offer a complete suite of loan offerings on our marketplace.
To participate on our marketplace, lenders are required to enter into contracts
with us that state the terms and conditions for such participation, although
these contracts generally may be terminated for convenience by either party.
We perform certain due diligence procedures on prospective new lenders, including
screening against a national anti-fraud database maintained by the Mortgage
Asset Research Institute, which helps manage our risk exposure. The data is
utilized to determine whether a lender and its principals are eligible to participate
on our marketplace and have not been convicted of and/or penalized for fraudulent
activity.
Consumers seeking mortgage loans through our loan marketplace can receive multiple
conditional loan offers from participating lenders in response to a single loan
request form. We refer to the process by which we match consumers and Network
Lenders as the matching process. This matching process consists of the following
steps:
Loan Request. Consumers complete a single loan request form with information
regarding the type of home loan product they are seeking, loan preferences and
other data. Consumers also consent to a soft inquiry regarding their credit.
Loan Request Form Matching and Transmission. Our proprietary systems and technology
match a given consumer's loan request form data, credit profile and geographic
location against certain pre-established criteria of Network Lenders, which
may be modified from time to time. Once a given loan request passes through
the matching process, the loan request is automatically transmitted to up to
five participating Network Lenders.
Lender Evaluation and Response. Network Lenders that receive a loan request
form evaluate the information contained in it to determine whether to make a
conditional loan offer.
Communication of a Conditional Offer. All matched Network Lenders and any conditional
offers are presented to the consumer upon completion of the loan request form.
Consumers can return to the site and view their offer at any time by logging
in to their My LendingTree account. Additionally, matched lenders and offers
are also sent to the email address associated with the consumer request.
Loan Processing. Consumers may then elect to work offline with relevant Network
Lenders to provide property information and additional information bearing on
their creditworthiness. If a Network Lender approves a consumer's application,
it may then underwrite and originate a loan.
Ongoing Consumer and Lender Support. E-mail and telephone support are provided
to both Network Lenders and consumers. This support is designed to provide technical
assistance and increase overall satisfaction of Network Lenders and consumers.
Non-Mortgage Products
Lending Products. Other lending products on our online marketplace include information,
tools and access to multiple conditional loan offers for the following:
Auto, which includes our auto refinance and purchase loan products. Auto loans
enable consumers to purchase new or used vehicles or refinance an existing loan
secured by an automobile.
Credit cards, which include offerings from most major card issuers. We launched
this offering in the second quarter of 2013.
Home equity loans and lines of credit, which enable home owners to borrow against
the equity in their home, as measured by the difference between the market value
of the home and any existing loans secured by the home. Home equity loans are
one-time lump sum loans, whereas a home equity line of credit reflects a line
of revolving credit where the borrower has flexibility to draw down and repay
the line over time.
Personal loans, which are unsecured obligations generally carrying shorter terms
and smaller loan amounts than home mortgages. We have historically operated
a personal loan offering, but launched an enhanced version of this offering
in the third quarter of 2013.
Reverse mortgage loans, which are a loan product available to qualifying homeowners
age 62 or older. We launched this offering in the first quarter of 2013 through
internal product development efforts.
Small business loans, which include a broad array of financing types, including
but not limited to loans secured by working capital, equipment, real estate
and other forms of financing, provided to small and medium-sized businesses
in amounts generally up to (although sometimes exceeding) $1 million. We launched
our small business loan marketplace in the third quarter of 2014.
Student loans, which includes both new loans to finance an education and related
expenses, as well as refinancing of existing loans. We launched our new student
loan offering in the second quarter of 2014 and our student loan refinancing
offering commenced in the fourth quarter of 2014.
We intend to continue adding new lending offerings for consumers, small businesses
and lenders on our online marketplace, in order to grow and diversify our sources
of revenue. We may develop such new offerings through internal product development
efforts, strategic business relationships with third parties and/or acquisitions.
Other Products. Other products also includes information, tools and access to
the following:
Credit repair, through which consumers can obtain assistance improving their
credit profiles, in order to expand and improve loan and other financial product
opportunities available to them.
Debt relief services, through which consumers can obtain assistance negotiating
existing loans.
Home improvement services, through which consumers have the opportunity to research
and find home improvement professional services.
Personal credit data, through which consumers can gain insights into how prospective
lenders and other third parties view their credit profiles.
Real estate brokerage services, through which consumers are matched with local
realtors who can assist them in their home purchase or sale efforts.
Various consumer insurance products, including home and automobile, through
which consumers are matched with insurance lead aggregators to obtain insurance
offers.
We refer to the various purchasers of leads from our other marketplaces as lead
purchasers. We generate revenue through the insurance products and real estate
brokerage services through match fees paid to us by insurance lead aggregators
and real estate brokers participating in our online marketplace. We generate
revenue from credit repair and debt relief services either through a fee for
a customer referral to a service provider partner or through a fee at the time
a consumer enrolls in a program with one of our partners. Revenue for home services
is derived primarily through matching of leads to both local contractors and
other home services lead aggregators.