2016-2017 RANKING OF TOP ONLINE MORTGAGE LENDERS


Intro: Purchasing a Home with Online Mortgage Lenders


Purchasing a new home is one of the most important milestones in your life. Unfortunately, your mortgage is also typically the loan that will last you the longest.

In order to make the mortgage process easier, many people are now looking to the best online mortgage lenders to apply for mortgages online. Consumers are finding that the process can be significantly faster with online mortgage companies and the ease with which they can apply for a mortgage online.

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Whether you want to go the traditional brick and mortar lender route or apply for a mortgage online, you still want to search for the most favorable terms possible. Which of the online mortgage companies offer the best rates? How do you know if your online mortgage broker has the specific type of mortgage you’re interested in?

When you apply for a mortgage online, you want to be certain that the online mortgage broker you’re considering has all of the terms you’re looking for. After all, you’re committing to a long-term relationship with these online mortgage companies.


Don't Miss: Mortgage Rates/Loans Available to You


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How do you know which companies are the best online mortgage lenders? AdvisoryHQ wants to answer your questions regarding which online mortgage companies will best assist you with the purchase of your next home.

We’ve assembled a list of the best five top online mortgage lenders to help you get started on the path to online home loans.

See Also: Top Mortgage Lenders – List of US Largest Mortgage Lenders (Reviews)


AdvisoryHQ’s List of the Top 5 Best Online Mortgage Lenders

List is sorted alphabetically (click any of the names above to go directly to the detailed review section for that online mortgage broker or lender)



Top Online Mortgage Lenders | Ranking Reviews

Online Mortgage Lender/Broker

Application Time

Amerisave

10 minutes

Guaranteed Rate

15 minutes

Lending Tree

10 minutes

Sebonic Financial

30 minutes

Quicken Loans

Several minutes (unspecified)

Above list of top online mortgage lenders is sorted alphabetically

Online Mortgage Lenders’ Website

Online Mortgage Lender/Broker

Website

Amerisave

https://www.amerisave.com/

Guaranteed Rate

https://www.guaranteedrate.com/

LendingTree

https://www.lendingtree.com/

Sebonic Financial

http://sebonic.com/

Quicken Loans

http://www.quickenloans.com/

 

Are Online Home Loans for You?

Much like anything else done online, applying for a mortgage over the web comes with significant advantages and disadvantages.

Before applying for your mortgage online, it’s important for you to understand exactly which aspects of the lending process are most valuable to you.

The most significant drawback to online mortgage lenders is the lack of access to a live customer service representative who is available to you at a brick and mortar location.

If you believe customer service is the most valuable thing a company must have in order to do business with you, you might find mortgage loans online to be a little bit lacking in personal experiences.

Other individuals prefer the flexibility that using online mortgage lenders affords them. They save time (and money) by not having to drive to various locations for appointments and meetings.

They prefer to have phone interactions or email conversations versus a face-to-face conference. The convenience of getting a mortgage online is the biggest draw for this type of person.

Shopping for mortgage loans online also helps you to get a clear and quick glimpse of the rates. Getting a lower rate on your mortgage could save you thousands of dollars over the course of your fifteen- or thirty-year home loan. Online mortgage lenders can often offer the best mortgage rates and the lowest closing costs due to the lack of overhead necessary to sustain their business.

In addition to receiving the best interest rates, online mortgage loans can be more efficient than the same loan from a traditional financial institution. While traditional lenders often take thirty to forty-five days for a mortgage to close, you can cut that time down to as little as fifteen days when you get your mortgage online.

This can make your offer on a new home more appealing and competitive with potential all-cash offers on the same property.

There are a few definite advantages to using online mortgage lenders for your next home purchase. By saving time and money, you come out ahead financially — if you’re willing to sacrifice the one-on-one attention provided by a traditional bank or mortgage broker.


Selection Methodology

What methodology does AdvisoryHQ use in selecting and finalizing the firms, services, and products that are ranked on its various top rated lists?

Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top rated firms, products, and services.


Detailed Review – Top Ranking Best Online Mortgage Lenders

To take a closer look at the reviews of various online mortgage companies and their offerings, see below.

AdvisoryHQ has compiled a list of the top five best online mortgage lenders to help you see where these top companies for online home loans differentiate and how they were placed onto our list.

Don’t Miss: Best Mortgage Companies (Overview of the Top Mortgage Lenders)

Amerisave Review


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In 2014, the Consumer Finance Protection Bureau found Amerisave to be giving consumers the bait-and-switch by promising misleading interest rates and illegally overcharging for third-party services. They were ordered to pay a cumulative $19.3 million in fines, including a $14.8 million consumer refund.

However, since that time, Amerisave has worked to revamp their reputation as an online mortgage broker, attempting to make the online mortgage application process as smooth as possible. Many consumers are now very satisfied with the agents they are assigned to and the fees they are charged for the services provided to arrange their home loan online.

Key Factors That Enabled This Company to Rank as One of the Best Online Mortgage Lenders

Below is a brief overview of the contributing factors that placed Amerisave on our list of the top online mortgage companies for online home loans.

Types of loans

Amerisave offers an abundant selection of mortgage loans online across 49 states and the District of Columbia. They cover single family homes, condos, second homes, investment properties, and multi-unit properties. When you’re shopping for mortgage loans, you can apply for any of their available products in less than ten minutes:

  • VA loans
  • USDA loans
  • Non-conforming mortgages
  • FHA funding
  • Refinancing

A mortgage rate quote takes less than one minute to complete with only a total of seven questions required. They will compile your projected rates for 30-year, 15-year, FHA, VA, or USDA online home loans among others.

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A popular question among many consumers relates to the minimum credit score that you will need to apply for a mortgage online. Amerisave requests a minimum credit score of 620 for their conventional choices for a mortgage online. However, the FHA, VA, and USDA online home loans offer a little more flexibility, with a minimum credit score 580 in order to qualify.

Processing

Regardless of what sort of situation or home loan works best for you, the process is promised to be quick because of the in-house work that Amerisave does on each individual loan. While some online mortgage companies are similar to referral sites that sell your mortgage to a third-party lender, Amerisave does the work themselves. They process, underwrite, close, and fund all of their online mortgage loans to make your experience quicker and more convenient.

Processing time frames can vary depending on which type of mortgage online you opt to apply for. However, the process usually ranges from fourteen to sixty days in length depending on the complexity of your unique situation.

After you apply for a mortgage online and lock in your rates, your information is assigned to a loan officer who walks through the rest of the process alongside you. While you do sacrifice some of the personal experience of brick and mortar locations when you use online mortgage lenders, Amerisave adds something of a personal experience back into the mix.

Mortgage Lending Fees

Unlike some online mortgage companies, Amerisave does not request any up-front fees, except for the appraisal fee. While this is not due at the time of application, it must be paid for prior to locking in the interest rate you were quoted. Paying for an appraisal is an expected cost in the process of closing on any home loan, but because you are paying the fee up front, you will not pay for it at the time of closing.

Related: Best Banks for Mortgages – A Complete Guide (Best Mortgage Rates & Reviews)

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Guaranteed Rate Review


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Having issued over $18 billion in mortgage loans online last year and boasting a 95 percent customer satisfaction rating, Guaranteed Rate is listed as a top ten largest retail mortgage lender in the United States. Headquartered in Chicago, Guaranteed Rate was the top independent mortgage lender in their city just three short years after opening their virtual doors.

Guaranteed Rate especially appeals to those individuals who love the convenience that online mortgage companies can offer. With their entirely digital process, you never have to speak to a customer service representative to be approved for a mortgage online.

Key Factors that Enabled this Company to Rank as One of the Best Online Mortgage Lenders

Wondering how Guaranteed Rate landed on AdvisoryHQ’s list of the best online mortgage lenders? Keep reading to see which contributing factors were the most significant.

Loan Options

Much like Amerisave and several of the other online mortgage lenders, Guaranteed Rate provides a nice selection of products to choose from when you apply for a mortgage online. Consider any of the following:

  • 30-year and 15-year fixed-rate mortgages
  • Adjustable rate mortgages
  • Jumbo loans
  • FHA loans
  • VA loans
  • Interest-only mortgages

The rates for the various mortgage loans online show side-by-side with other brick and mortar and online mortgage companies for you to compare. They even demonstrate the points in money and fees associated with the online mortgage companies versus their own services. Guaranteed Rate feels confident that their own interest rates are going to be some of the lowest around.

Their listed requirements to secure a mortgage online is a minimum credit score of 620 for their conventional products and a minimum credit score of 580 for FHA loans (could be higher depending on your state’s requirements). They also suggest a 5 to 10 percent down payment on conforming loans (10 to 15 percent for jumbo loans).

Processing

At Guaranteed Rate, they attempt to make your process to apply for a mortgage online as quick and painless as possible. It can take as little as fifteen minutes to walk through the application process and check it off of your to-do list.

It is likely that your loan through Guaranteed Rate will be sold on the secondary market. This is not an uncommon situation when it comes to taking out mortgage loans online or in person. It is just something to be aware of as a consumer.

Mortgage Lending Fees

Unfortunately, Guaranteed Rate does allude to a non-refundable application fee, but it is difficult to find listed on their website (Nerd Wallet lists the application fee as $150). While some online mortgage lenders do require this fee upfront, many do not.

If you aren’t positive you would choose Guaranteed Rate as your lender upon approval, it might be best to save your money and apply elsewhere.

Once you apply for a mortgage online through Guaranteed Rate, you should know what sorts of fees you can expect through the rest of the process. Guaranteed Rate makes their fees fairly easy to understand:

  • Appraisal fee – $400
  • Lender fee – $1,190
  • Title Services or Lenders Title Insurance – $200

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LendingTree Review


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Lending Tree is one of the most well-known names in online mortgage lenders because of its heavily advertised name brand. Unfortunately, what many consumers don’t realize is that LendingTree is more of a marketplace than an actual lender. LendingTree allows you to request a pair-up with potential online mortgage lenders for online home loans, but they also offer home equity loans, auto loans, and personal loans.

Why opt to use LendingTree in place of other online mortgage lenders? The reason is simple: you can compare other offers from additional online mortgage companies quickly and easily after seeing which of their lenders has programs you would qualify for.

Key Factors That Enabled This Company to Rank as One of the Best Online Mortgage Lenders

While LendingTree may not be a lender in and of itself, take a look at these reasons that it made it onto our list of the best online mortgage lenders.

Loans

Because LendingTree works with a number of other online mortgage companies, the types of online home loans that it is able to offer is abundant. For example, you can apply for conventional mortgages (15-year or 30-year), jumbo loans, FHA loans, VA loans, construction loans, and second mortgages.

The plethora of products offered by LendingTree’s list of providers can give you the option of low down payment mortgages, low interest rates, and various turnaround times.

Application and Fees

You will find that the process to apply for a mortgage online on LendingTree is pretty quick and painless. They claim that the process should only take approximately ten minutes to complete, start to finish. The information you fill out with LendingTree will allow you to be matched with a potential lender or list of lenders.

From this point, you will then need to apply for a mortgage online with one of these other online mortgage companies. While the LendingTree loan request form is free, your application with the third-party online mortgage lenders available through their network may not be. As a result, your application fees may vary depending on which lender you are matched with and where you need to complete your online mortgage application.

Of course, the same information applies to any closing fees required by your lender. The online mortgage companies that will manage your mortgage online are responsible for setting up and charging their own set of associated fees. LendingTree will only match you with one of these companies; any further fees set out by the company will be at their discretion.

Popular Article: How to Get a Home Equity Loan with Bad Credit (What You Need to Know)

Overall, the services that LendingTree provides make it easy for potential homeowners to complete an online mortgage application. By pulling your credit report and matching you with a list of online mortgage lenders, you will have a great starting point. However, it will then require additional research of each potential match to determine which company may be the best fit for your online mortgage loans.

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Sebonic Financial Review


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A new startup to help individuals and families procure a home loan online, Sebonic Financial is associated with the Cardinal Financial Company Limited Partnership, which has been in business since 1987. Based out of Charlotte, North Carolina, this company claims that their technological advances allow them to give consumers a lower cost, more efficient home loan online, and a simpler process with more frequent updates.

Key Factors That Enabled This Company to Rank as One of the Best Online Mortgage Lenders

See below for the contributing factors that allowed Sebonic Financial to rank as one of the best online mortgage lenders on the market today.

Loans

Your online mortgage application with Sebonic Financial is a little lengthier than what some of the other best online mortgage lenders require. While some, such as Guaranteed Rate, only require approximately ten to fifteen minutes of your time, your online mortgage application at Sebonic will require roughly a half hour.

When you apply for a mortgage online, you will mark which loan option best fits your needs and the amount. However, Sebonic won’t hold you to it, allowing you make changes to your home loan online and promising not to derail your loan.

You can purchase a single family home, multi-family unit, condo, or a townhome with their financing. It does take a few minutes to obtain a rate quote, with several questions not required from other online mortgage lenders. However, you do have another nice selection of fixed-rate and adjustable-rate mortgage products to choose from for your home loan online.

Application

The option to submit an online mortgage application is not readily apparent. Instead, the website consistently redirects you to their customer service phone number so they can assist you in walking through the application process and understanding your mortgage options. However, after your initial application is completed, it seems that it should roll along much smoother if you prefer all online communication.

You have the option to print, sign, scan, and email documents back or to e-sign them so you can do away with paper trails.

Customer Service

Many individuals opt to go with online mortgage lenders because of the convenience of completing all of the necessary information without any one-on-one interaction required. Sebonic Financial has great consumer reviews from reputable sources but doesn’t offer much in the way of transparency on their website.

In fact, it is difficult to find the type of online mortgage loans you could be looking at, it is cumbersome to get a detailed rates quote, and the website continuously prompts you to call customer service.

If you like the idea of processing your mortgage online with the additional service of speaking to a live representative, then Sebonic Financial may be a great match for you. However, if you were opting for an online mortgage broker that didn’t require this, you might be disappointed with the services they offer overall.

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Quicken Loans Review


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Quicken Loans can boast over two million online mortgage loans closed — quite a track record when it comes to online mortgage lenders.

J.D. Power and Associates named them first in their class for the highest customer satisfaction for primary mortgage origination six years running.

As a matter of fact, they were labeled as the largest online mortgage lender (not an online mortgage broker) by National Mortgage News. But what is it about this company that makes them ideal for online mortgage loans?

Read More: US Bank Mortgage Reviews – What You Should Know (Home Mortgage, Complaints & Loan Reviews)

Key Factors That Enabled This Company to Rank as One of the Best Online Mortgage Lenders

Here are a few of the most important deciding factors that allow AdvisoryHQ to place it on our list of the best online mortgage lenders.

Loans and Application

As with the other online mortgage lenders, you have quite a few choices when it comes time to apply for a mortgage online. You can choose from adjustable-rate and fixed-rate terms (even giving you the option of choosing your own loan term), FHA loans, VA loans, jumbo loans, or reverse mortgages and refinancing.

You have several options for how to apply for a mortgage online with Quicken Loans. You can opt for a live chat or email, but you can also call in to their customer service line to speak with a live person.

This will match you with a loan expert who will guide you through the rest of the process.

The application process to get pre-qualified or pre-approved is free and provides you with up to six loan options to match your needs. In order to help you find the best mortgage loans online, they want to give you choices, but a customer service representative can also help to assemble a custom option for you.

Being assigned to a single person who can answer your questions makes it easier to feel like you’re getting better customer service than a company that works primarily online. This makes it a little easier for consumers who love the idea of online mortgage lenders but still prefer brick and mortar locations because of the level of face-to-face interaction.

Fees and Processing

From the time you complete your online mortgage application, thirty days or less is likely the window to closing with Quicken Loans. They are not an online mortgage broker that can possibly sell the loan to a third-party company. Instead, they fund and process your loan directly.

Buyers do owe Quicken Loans a deposit upfront to cover fees associated with processing their mortgage loans online. The price can vary anywhere from $400 to $750 and covers:

  • Credit report
  • Appraisal
  • Loan processing (including title insurance)

If you pay your Quicken Loans deposit but your application is ultimately denied or you decide to use one of the other best online mortgage lenders, your deposit is partially refundable. Any amount that has already been spent (for example, on pulling your credit report or your appraisal) is no longer refundable, but you will receive the difference back.

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Conclusion: Best Online Mortgage Lenders


If you think you may want to apply for a mortgage online, this comprehensive and detailed review of the best online mortgage lenders should help making the decision about which company to choose a little easier.

You will be stuck with your mortgage for quite some time, possibly for up to thirty years, so it’s important to choose online mortgage companies or an online mortgage broker that can meet your expectations in the here and now and for the future.

Before you fill out an online mortgage application, consider the rates, the terms, and the level of customer service that each company can provide.

Based on your own personal preferences or communication abilities, certain companies may not be a good match for your online home loans. Others may require too much money upfront for you to feel comfortable with their mortgage loans online.

No matter what your personal preferences are, these top five best online mortgage lenders can meet a variety of needs.

Whether you need a conventional mortgage product or something a little out of the norm, one of these online mortgage lenders is sure to provide you with a home loan online that you can be happy with for the long-haul. 

Related: Churchill Mortgage Reviews – What You Want to Know (Complaints & Review)


Below is 2015-2016’s review and ranking of the best online mortgage lenders.


Best Online Mortgage Lenders | 2015-2016 Ranking


This comparison review of the best online lenders is a follow-up to AdvisoryHQ’s recently published ranking and reviews of the best mortgage lenders.

AdvisoryHQ was launched in March of 2015 and has since become one of the fastest-growing review and ranking platforms for the financial segment.

In this review, AdvisoryHQ provides a high-level comparison of online vs. traditional mortgage lenders along with a list and review of the top online mortgage lending companies.

Online Mortgage Lender vs. Traditional – Which Is Better?

Which is a better option for you – an online mortgage lender (like Quicken Loans) or a traditional mortgage provider (e.g., Chase, Wells Fargo, Bank of America, Bank of the West or your local bank/credit union)?

To better answer this question, there are at least five key variables that you need to consider:

  1. Which is more important to you – the lowest mortgage rates available or having access to a mortgage consultant who will walk you through the loan origination, processing, and closing process?
  2. Are you looking to get pre-approved as a first step?
  3. Ae you looking to close on your loan within a 30-day time frame?
  4. Are you interested in having in-person meetings, or are you comfortable with an online process?
  5. Do you strongly prefer to have most, if not all, of your financial accounts (e.g., loans, checking/savings account, and credit cards) with one or just a few financial firms?

There are pros and cons in deciding between an online mortgage lender versus going with a local or international bank or credit union. For example, as stated by Gregory Garrabrants, CEO of Bank of Internet USA (a top rated online bank), “Traditional services can be slow and unresponsive, which causes a problem for some borrowers,” especially those that are looking to close within 30 days.

In addition, the online loan process is very convenient and also available to most US consumers, irrespective of what state you reside in.

On the other hand, being able to have in-person meetings with a mortgage consultant at your local bank or credit union could be the difference between having an effortless consumer experience versus having a really horrible mortgage experience, especially when there are paperwork issues.

At the end of the day, it all comes down to your preference. In regard to pre-approvals, most online mortgage lenders (just like their brick-and-mortar counterparts) do offer pre-approval services.

Based on your answers to the above five questions, you can consider going with one of the top online mortgage lenders listed and reviewed below, or you can choose to get a loan from one of the largest mortgage lenders and loan providers.

List of the Best 4 Online Mortgage Lenders

  1. Quicken Loans
  2. AmeriSave
  3. LendingTree
  4. Sebonic Financial

Special Note About AmeriSave:

AmeriSave (AmeriSave Mortgage Corporation) is a well-known online mortgage lender that provides low-interest mortgage loans to consumers across the US.

However, AdvisoryHQ’s research staff debated whether or not to include AmeriSave in this list of top online mortgage providers due to numerous instances of alleged lending abuses.

Click here for details on the allegations and penalties imposed by the Consumer Financial Protection Bureau (CFPB) on this online mortgage lender.

The AdvisoryHQ team decided to include AmeriSave on this list of best online mortgage lenders based on a couple of factors including the very low mortgage rates offered by the company, its popularity, and its position as a major online mortgage lender.

Detailed Online Mortgage Lenders Review and Comparison

Quicken Loans

In addition to being one of the largest mortgage companies in the US, Quicken Loans also ranks as this year’s top ranking online mortgage lender based on loan volume, an extremely high level of customer satisfaction, a wide range of loan products, and its user-friendly loan origination and processing platform.

Click here for a detailed review of Quicken Loans  or click below to visit Quicken Loans for additional information on this top ranking best online mortgage lender.

In addition to being ranked the top online mortgage loan provider, Quicken Loans has also been rated as one of the best places to work by Fortune magazine.

AmeriSave Reviews

AmeriSave was founded in 2001 and has since grown into one of the top online home mortgage lenders.

The firm provides mortgage loans to customers across 49 US states and Washington, D.C.

As an online mortgage provider, AmeriSave was designed and developed from the ground up to make shopping for a mortgage loan an easy and streamlined process.

When applying for a loan online, you can easily shop, apply, and request your rate to be locked in minutes.

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AmeriSave Products:

AmeriSave offers a wide range of mortgage loans and products including:

  • Conventional fixed mortgage loans
  • VAs
  • USDAs
  • Non-conforming loans
  • FHAs

The firm also provides in-house processing, underwriting, closing, and funding.

AmeriSave Home Loan Purchase Process (Pre-Approval):

Irrespective of the number of good or bad reviews posted by borrowers about AmeriSave, one thing is clear: the online application is straightforward.

Stage 1: Search through rates and products to determine the best loan, loan rate, and loan amount that matches your needs.

Mortgage Rate Quotes

Stage 2: Apply and request your rate online.

AmeriSave - Apply for your mortgage rate online

Stage 3: Download your loan documents, sign, and mail back to AmeriSave Mortgage Corporation.

Stage 4: AmeriSave then processes and underwrites your loan. Your loan will be reviewed and subject to a sales contract, appraisal, title, and other necessary items.

Stage 5: If the initial eligibility criteria are met, AmeriSave will provide you with a pre-approval letter.

See Also:

AmeriSave Home Loan Purchase Process (Lock Your Rate and Close):

Stage 6: After you’ve found a house, you’ll need to send a copy of your purchase contract to AmeriSave.

Stage 7: Lock in your loan interest rate, and AmeriSave will order and approve an appraisal.

Stage 8: Visit the attorney or title company’s office that is convenient to you and the seller to close your loan.

AmeriSave – Great Reviews and Comments:

Top reviews left by recent borrowers that have used AmeriSave’s service:

  • “Fast and accurate service.”
  • “Patrick did what he promised they would do. He came through for me.”
  • “Shaun went above and beyond anything I could have imagined as far as the service and their willingness and helpfulness.”
  • “My loan processor, Yolanda Elder, was incredibly professional and an absolute pleasure to do business with. She was incredibly competent and streamlined what can be a difficult process. Thank you very much, Yolanda, for all your assistance.”
  • “With any home purchase, the stress level is high. We were lucky enough to get Nikki as our processor which helped lower our stress level. She worked with us to get all the required documents correctly uploaded and helped us when we made a mistake. I would call and email her daily and, in some cases, hourly, and she always responded. There was one time she responded to an email at 11:30 PM on a Friday night. If that's not customer service at the highest level, I don't know what is. It is true that your company is only as good as your employees, and Nikki makes AmeriSave shine above all the rest.”
  • “This is my 3rd time refinancing with AmeriSave. The whole transaction went very smooth and was hassle-free. Their web page design is very simple, and anyone can upload required docs from a computer.”
  • “I am impressed with the promptness of AmeriSave's service.  I have had several mortgage loans and have never had an appraiser be so prompt. The ability to scan my personal documents & upload them to AmeriSave is such an efficient way to apply.”

AmeriSave’s – Bad Reviews and Comments:

Below are examples of negative comments posted by borrowers that claim to have had a bad experience with AmeriSave:

  • “I wouldn't recommend this lender to anyone. On closing day, you will see their real face.”
  • “Using AmeriSave was a nightmare. Unless you have a simple and straightforward mortgage need, do not use them. Avoid these guys and do not be seduced by the low rates.”
  • “Do not use this company. You will lose money and time bad … very bad!”
  • “After I had started my application, I quickly withdrew it.  The ‘bait-and-switch’ liability lawsuit tactic scared me away. The interest rate quoted, given the current market rates, was way too low to sound real. The big hint came to me when they waived the escrow account funding, which did not seem consistent with industry practices.  I listened to my gut instinct and stayed away.”
  • “Remember these names: Aleesha Burton and Allison Stoyanoff. They’ll make you pay for a useless appraisal and will lead you on for 3 months. On the day that I got denied, one of them, Aleesha, called me to request additional documents to close. Then I get a voicemail from Allison saying that my loan was denied due to insufficient income.”

__

AmeriSave vs. the CFPB

Last year, the CFPB ordered AmeriSave to pay $19.3 million in penalties for engaging in bait-and-switch mortgage schemes.

According to Richard Cordray, the director of the CFPB, “AmeriSave lured consumers in with deceptive advertising and then illegally overcharged them for services from an undisclosed affiliate. By the time consumers discovered the advertised low rates were too good to be true, they had already committed to pay hundreds of dollars to AmeriSave.”

The CFPB discovered that, between 2011 and 2014, AmeriSave advertised its interest rates and terms using online banner ads and searchable rate tables on third-party websites. When consumers visited AmeriSave’s website, they were given misleadingly low quotes that were based on having an 800 FICO score, even though these same consumers had previously entered a FICO score below 800 on the third-party website that led them to AmeriSave.

In addition, AmeriSave required loan applicants to pay for an appraisal before it would provide them with a good faith estimate (GFE) for the mortgage loan. It did not disclose to consumers until afterwards that the appraisal would be performed by its own affiliated company.

At closing, AmeriSave would charge consumers for “appraisal validation” reports, without informing them that the service was provided by an affiliate entity.

Other Online Mortgage Lender Reviews

Sebonic Financial – Brief Review

Sebonic Financial aims to be “a new kind of company.” The firm is an online mortgage lender that combines enhanced technological capabilities with simplicity, efficiency, and fast processing to provide low-cost mortgage loans to US consumers.

Sebonic proudly emphasizes its startup culture of new ideas, fast execution, and technology with the capabilities and resources of an established mortgage lender.

However, Sebonic is more than just an online mortgage provider. It also has a highly experienced staff of mortgage professionals to work with you and answer questions that you may have.

They’ll provide you with regular updates and tell you exactly what you need to provide to complete your application process.

By providing personal collaboration on your loan and by automating much of the loan process, your loan moves from quote to closing faster than many of their competitors.

Sebonic - Top ranking online mortgage loan provider

LendingTree – Brief Review

Although well known as a top online mortgage lender, LendingTree does not directly provide mortgage loans to consumers. Rather it is an online marketplace or online lending exchange that connects home buyers with banks, credit unions, and other mortgage lenders. LendingTree can best be considered as a top online mortgage broker.

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AdvisoryHQ Team


Note: Some firms (and products)—including the one(s) above—that have been reviewed and ranked by AdvisoryHQ may be affiliates of AdvisoryHQ.

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Click here to view AdvisoryHQ’s advertiser and editorial disclosures, which includes a list of our affiliates.