eLEND, a division of American Financial Resources, will announce the launch of its mobile comparison tool, which will compare their rates to the loan estimates from other lenders.
Under Consumer Financial Protuection Bureau’s rules, consumers are permitted to shop the market for 10 days after receiving their loan estimates. eLEND’s tool will enable consumers to compare their current loan estimate to those that eLEND could provide.
Their new tool, Rate my Rate, uses technology that reads information off of a prospective borrower’s current loan estimates and feeds it through the eLEND pricing engine.
The engine will compare five major categories, including loan costs over five years, principal paid in five years, annual percentage rate, total interest percentage and total loan costs.
eLEND created their tool in response to a study that showed about 77% of borrowers applied to only one lender or mortgage broker.
“Most lenders don’t want to risk the loss of business advocating that their customers actually go out and get another estimate from someone else,” CEO Rich Dubnoff said. “We not only encourage it, we make it easy for them to do so.”