Priceline.com Announces National Expansion For Its Name Your Own Price(sm) Mortgage Service
- Launch is supported by national advertising campaign featuring
William Shatner and a special, limited-time airline ticket offer
- No more waiting for days to see if you'll get your rate: Now,
PricelineMortgage makes it possible for home buyers to lock in
their rate in as little as 30 minutes
NORWALK, Conn.--(BUSINESS WIRE)--March 23, 2000--
Now, for the first time, home buyers nationwide can ignore fluctuating interest rates and name their own terms for a mortgage through priceline.com (Nasdaq: PCLN). Today, priceline.com announced the national launch of its newest service, PricelineMortgage, which allows consumers to name their own mortgage terms, get guaranteed closing costs, and lock in their rate in as little as 30 minutes.
The PricelineMortgage launch is being supported by a multi-million-dollar national TV, radio and print advertising campaign featuring William Shatner, who sings the praises of PricelineMortgage. The launch also will feature a special, limited-time promotion where customers who get a mortgage through the service will receive two free airline tickets good for round-trip travel anywhere in the continental U.S.
PricelineMortgage is the only service on the Internet that lets mortgage shoppers apply online and set their own terms for loans. Once the applicant receives confirmation that his or her rate has been accepted, which can happen in as little as half an hour, then that rate is locked in. PricelineMortgage can also save consumers up to $1,000 in guaranteed points and closing costs, and on larger jumbo loans consumers can save even more.
"Interest rates are on the rise, which means that mortgage borrowers applying through traditional services run the very real risk of having their rates increase from the time they apply to the time their loans are approved," said Ben Ness, senior vice president of financial services for priceline.com. "With PricelineMortgage, if the customer's terms are accepted, that rate is instantly locked in. Low closing costs are also guaranteed online to the customer using a proprietary county-level database developed exclusively for PricelineMortgage."
Consumer advantages to using PricelineMortgage include:
- Online lock-in. At the time a borrower's offer is accepted,
PricelineMortgage locks in the customer's rate. Few online originators allow consumers to complete the lock process electronically and virtually all place substantial restrictions on the rate lock.
- Guaranteed low closing costs. Unlike other Internet mortgage
sites, PricelineMortgage spells out and guarantees closing costs
and may save consumers up to $1,000 in closing costs compared to
other online and off-line lenders.
- Loan level pricing. Through a unique pricing engine, each
customer's loan request is evaluated based on its own unique
attributes. Decisions on whether to accept the customer's
requested interest rate is determined uniquely based on each
customer's credit history and loan attributes, ensuring the
lowest possible price for each customer.
- Real-time loan request evaluation. By using direct links to
automated underwriting tools, PricelineMortgage customers receive
a complete credit decision in 24 hours or less.
- Online loan counselors. PricelineMortgage features live chat
support from a staff of online loan counselors. To reach a
counselor, customers simply select the PricelineMortgage chat
option and then electronically talk with a loan counselor while
they fill out their application.
Currently, PricelineMortgage handles first mortgage loan requests of up to $1,500,000 using a variety of automated underwriting tools. Following a successful beta test of the service in Florida and New York, PricelineMortgage is now being made available in all 50 states and the District of Columbia.
PricelineMortgage is an operating subsidiary of a Federal Savings Bank, equal housing lender. Priceline.com licenses its business model to PricelineMortgage.
Priceline.com is the patented Internet pricing system that enables consumers to achieve significant savings by naming their own price for goods and services. Priceline.com takes consumer offers and then presents them to sellers who can fill as much of that guaranteed demand as they wish at price points determined by buyers. Priceline.com's "virtual" business model allows for rapid scaling using the Internet.
Because the Company electronically collects consumer demand, it can fill this demand directly with sellers or by using proprietary databases. Priceline.com does not maintain or warehouse inventories in any of its product lines.
Priceline.com is currently selling multiple services to its sellers across three distinct product categories: a travel service that offers leisure airline tickets, hotel rooms and rental cars, a personal finance service that offers home mortgages, home refinancing and home equity loans, and an automotive service that offers new cars. Recently, priceline.com announced that it would also offer new services for long-distance telephone calling and credit cards.
This press release may contain forward-looking statements which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions including, without limitation, "may," "will," "believes," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential," and "forecast," reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies and other factors described in the Company's filing with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
CONTACT: Brian Ek at priceline.com
Mike Darcy at priceline.com
Karen Rappaport at Connors Communications