Name-your-price retailer Priceline.com (Nasdaq: PCLN) announced today that it has teamed up with Alliance Capital Partners to offer name-your-price mortgages nationwide. Priceline.com believes that the online mortgage application will save some homebuyers up to $1,000 (US$) in closing costs.
The new service will be known as Pricelinemortgage. Alliance Mortgage, a subsidiary of Alliance Capital Partners, will use Fannie Mae’s Desktop Underwriter to provide loan decisions. Priceline.com expects the automated underwriting system to speed up the approval process for customers.
“Partnering with Priceline.com gives us the opportunity to enter one of the fastest growing segments of the mortgage industry,” said Robert M. Clements, president and CEO of Alliance Capital Partners.
Priceline.com Already Working With LendingTree
Priceline.com has been offering name-your-price mortgages, refinancing and home equity loans through online loan marketplace LendingTree since February. Priceline.com says that it has helped consumers secure nearly $500 million in accepted loans. LendingTree, which has a network of more than 75 lenders, will continue to work with Priceline.com to offer mortgage services. LendingTree offers mortgages, a variety of loans and credit cards.
“Given the enthusiastic response to Priceline.com’s initial mortgage offering through LendingTree, it’s clear that many consumers want a name-your-own-price option for obtaining home mortgages and other loans,” said Richard S. Braddock, Chairman and CEO of Priceline.com.
How Pricelinemortgage Works
Pricelinemortgage will use a pricing engine that is being jointly developed with Alltel Corp. Each loan request Pricelinemortgage receives will be evaluated on a case-by-case basis. Loan decisions will be based on customers’ credit history and loan attributes. The automated underwriting tools used by Pricelinemortgage will allow the service to give customers a credit decision within minutes.
Once a name-your-price offer is accepted, Pricelinemortgage will provide a locked-in interest rate to the customer, something Priceline.com says few mortgage services will do online. Closing costs will be clearly detailed, and this new service will be available in all 50 states.
About Alliance Capital Partners
Alliance Capital Partners is a holding company based in Jacksonville, Florida. In addition to Alliance Mortgage, the company owns First Alliance Bank and sub-prime mortgage lender Home Alliance Mortgage. The company also operates BNY Mortgage Company through a joint venture with the Bank of New York.