S Lundgren

Bankrate's a short, says Sy Jacobs (RATE)

BANKRATE = BAIT & SWITCH MORTGAGE ADVERTISING..

For what it is worth, Bankrate charges $6.25 per click on the unmonitored mortgage rate tables. When I say unmonitored, I mean the bait and switch is awful on Bankrate...the worst on the internet. Companies on Bankrate are so desperate for business, that they are forced to advertise rates below what is a true market rate. In turn, the consumer gets a bad taste in their mouth after going to Bankrate, and getting bait and switched. Bankrate is bad for the mortgage industry; it gives the mortgage industry a black eye, and a slimey image.
I own a mortgage company. I advertisied (never go back) on Bankrate. I know how bad it is. Bankrate only wants the check. They don't care about bait and switch. I cannot be associated after 12 years in business tied to such an immoral site like Bankrate.
The good part is that advertisers on the site, have banded together, to click in mass numbers, on the bait and switch rates on Bankrate. For example, today, 5.75% with only $599.00 in fees, on Bankrate, is bait and switch. Close to 300 existing advertisers will click on the bait and switch Bankrate advertisers, costing them $6.25, per every click.( which is good if you are long) That is a good form of income for Bankrate, and canibalism for the existing mortgage advertisers.
Bankrate has lost 50% of its advertisers, 3 years in a row...really. No more NEW mortgage companies are coming out in this market...think about it, and the few that are on there now, are angered with the high level of bait and switch. This means revenues will, HAVE to slide on Bankrate. I am in a network with over 100 PAST Bankrate advertisers. This site will continue to get new advertisers, but this site will never be able to maintain the large number of advertisers, until Bankrate contains Bait and switch...The lawsuit, the Wall street Journal mentioned, will come to fruition this fall. This will teach many exisitng Bankrate advertisers, that bait and switch is not ok, and losing your hard earned money on a bait and switch site like Bankrate, is worth suing over.
Just like Mortgage.com, wcich I shorted from 30 down to 1 cent in the 90's, Bankrate has lots of room to go down. Think about it; the real estate boom is over! There cannot be a boom, after a boom! Stock goes below 20 by years end. Basic math. I am in the biz, and am not short on this stock, because of the implicatins of existing lawsuits against Rate. I only speak the truth. Bait and switch is not good for Rate. BAIT AND SWITCH ON BANKRATE NEEDS TO BE MONITORED TO SAVE BANKRATE'S NEW CLIENT PIPELINE.


messages.finance.yahoo...

Bankrate.com doesn't rate

BANKRATE IS FEELING THE HEAT





Just like King Kong clutching the top of the Empire State Building…Bankrate, the "800-pound Gorilla" of online home loan rates is falling under fire. The Bankrate website draws millions of visitors, as it promises to give a listing of companies and their rate and cost offerings for mortgage loans, and even passes that information on to most of America's largest newspapers as fact. It proclaims itself to be a tool for the consumer, just delivering information and advice…but as many reputable mortgage lenders have known all along, it turns out that consumers are finding the reality of Bankrate to be a little different.

A lawsuit is in the works against Bankrate, after hundreds of consumers complained about lenders who failed to deliver the rates and terms they promised on the website. In fact, one lender actually told a Bankrate employee that a consumer would need a "direct pipeline to God" in order to qualify for the rates and terms they advertise on the site. Why would a lender post rates and terms they are unwilling or unable to honor? To lure in consumers who truly want to believe that they are getting an interest rate or cost package that is significantly lower than all the competition. And by the time the consumer finds out they are not getting the package they were promised, they likely have wasted enough valuable time that they feel somewhat stuck to use whatever terms the lender hauls out.

Of course there are real reasons that the terms of a loan package can change mid-stream. When working with a reputable lender, it would generally only be caused by a change from what was submitted on the loan application. Some examples of this include a change in credit, income, employment, debts or assets.

So are there any reputable lenders on Bankrate? Yes, of course. And some of those lenders were the ones who prompted the lawsuit in the first place. As they were posting real interest rates and terms they could actually honor, they could see that consumers would instead be contacting the less-reputable lenders who were posting completely unrealistic rate and cost offers. And the consumer might not find out the difference until it was too late. Mortgage lenders get their money from essentially the same places - so anytime there is a very large difference between quotes on identical programs, it pays to ask some questions.

Bottom line - the internet at large can be a great place to gain basic trends and information about a home loan, but the Bankrate lawsuit illustrates the need to work with a Trusted Advisor. A home loan is generally the largest financial transaction of your entire life - working with a real professional who can advise you on correct strategies and programs for your needs is a must. And like your mom or dad always used to say - you get what you pay for, and solid advice from a real professional may cost more than a bargain basement operation.

Most importantly, remember that the absolute lowest rate and terms on the WRONG financial strategy or loan program for your life will prove to be far more costly than a competitive rate package on the RIGHT strategy, which correctly fits your financial goals and needs.


STAY AND PAY…OR WALK AWAY?





From Barry Habib, co-founder of Mortgage Market Guide.

Bankrate.com doesn't rate

Subject: BANKRATE= BAIT & SWITCH (Mortgage Advertising)


Bankrate.com...

What Bankrate.com really offers:

Bankrate.com offers a service to potential home loan and mortgage borrowers free of charge where you can enter your state, city and loan scenario to find out interest rates. After you enter in this information, you will be brought to a screen where dozens of mortgage broker shops display their prevailing interest rates. These mortgage brokers pay a substantial amount of money to have their information listed in order to get leads (or potential borrowers). Occasionally, you will see a stray bank or two listed among the brokers.

If you ever have tried this service, you will see that the majority of mortgage brokers offer a rate that is often times ULTRA LOW compared to the bank rates. Have you ever wondered why? It is called "Bait and Switch". Today I noticed that a mortgage broker on Bankrate.com listed their rates at 5.375% for a 30 yr fixed with no points or origination fees (the average rate without points is 6.25% today). I went directly to their website and yes, they are advertising that rate there as well. Let me be the first to tell you that this is an outright deception. I have access to the same rates as these mortgage professionals and unless you are paying 4-5% in points, you are not getting this rate..... period.

Why do they do this?
If I am offering a realistic interest rate at 6.25% and they are quoting a rate a 5.375%, who would you apply with? The person offering the lower rate. It's okay, admit it. No one is judging you. If I didn't know any better, I would definitely look into it. The sad thing is that after several weeks of processing, paying their application fee, and an appraisal fee, if they came back and said your loan was approved for a rate of 6.375%, would you take it? Now keep in mind that your closing is in 5 days, you have forked over $600+ for the appraisal and application fee, and you are closing on the sale of your old home in 3 days and the new buyers are moving in next week. Would you take the loan? You bet you would. Don't shake your head no. You would take it. Oh by the way, you have to pay a 1% origination fee now..... did they forget to mention that to you?

It is services and mortgage swindlers like these that make my it hard for people to trust the real professionals. Folks, be careful of services and brokers that offer the "too good to be true" rates. They are too good to be true and sooner or later, you are going to pay for that decision. Be very careful to request and meticulously review a good faith estimate PRIOR to paying any application or appraisal fees.