Two points emerged from online lending firm E-LOAN's Q2 conference call. First, it's partnership with Renovation Experts illustrates how the smaller publicly-traded Internet companies are ahead in forming relationships with new and emerging Internet companies. And second, E-LOAN is a clear beneficiary of the house price boom, demonstrated by its discussion of home equity and mortgage loans. (Hedge fund manager Sy Jacobs thinks that Bankrate.com, ticker: RATE, is a short because of its exposure to the housing market; perhaps he should look at EELN too.) Excerpts from CEO Chris Larsen's prepared results on the call:
Second quarter highlights in marketing relate to our continued addition of new Internet partnerships, the most significant being a recent agreement with Renovation Experts, or Renex. Renex is a leading Internet destination site for consumers interested in locating home improvement contractors. Effective in early July, we became the exclusive lending partner for Renex partners interested in reusing their home equity to remodel their homes.
We also began expanding our online advertising efforts which will help lower our marketing acquisition costs.
Finally, the initial response to our new advertising branding campaign has been very favorable. We continue to be confident that this campaign will establish our image as a leading consumer advocate lender in the business, further differentiating us from the competition and strengthening our brand.
Now, turning to our home equity platform. Flattening of the yield curve negatively impacted Q2 '05 volume, although we were able to improve volume by approximately 3% versus Q1 '05... Consistent with the first quarter, costs per loan decreased 6% due to new technology initiatives and our India outsourcing initiatives. Although conversions were stable, this is impressive as we continue to spend more time focusing on lower converting, lower FICO borrowers.
(Quotes are from the CCBN StreetEvents transcript.)
Not subscribed to this blog? You can get updated headlines for free by adding it to your My Yahoo page. Just log into your My Yahoo page, then return to this blog and click on the "+ My Y!" button on the top right of your screen.