BorrowMoney.com Profile
Borrowmoney.com, Inc. (BorrowMoney) operates an online loan marketplace for consumers seeking loans and other credit-based offerings.
The company’s online marketplace provides consumers with access to product offerings from active lenders (which the company refers to as ‘Network Lenders’), including mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans and other related offerings. In addition, the company offers tools and resources, including free credit scores, that facilitate comparison shopping for these loans, deposits, and other credit-based offerings. The company seeks to match consumers with multiple lenders, who can then provide them with competing quotes for the product they are seeking. By providing consumers access to a broad array of credit-based offerings directly from multiple lenders, rather than just multiple quotes from the same lender or indirectly through intermediaries, its marketplace is differentiated from other providers operating loan comparison-shopping marketplaces.
The company strategically designed and executed advertising and marketing campaigns (which is referred to as performance marketing) span a wide array of digital and traditional media acquisition channels and promote its BorrowMoney.com and other brands and product offerings. The company’s marketing efforts are designed to attract consumers to its websites and toll-free telephone numbers. Interested consumers complete inquiry forms, providing detailed information about themselves and the loans or other offerings they are seeking. The company refers to such consumer inquiries as loan requests. The company then matches these loan requests with lenders in its marketplace that are seeking to serve these consumers’ needs. The company plans to generate revenue from these lenders, generally at the time of transmitting a loan request to them, in the form of a match fee. In certain instances, outside the mortgage business, the company plans to charge other kinds of fees, such as closed loan or closed sale fees. In addition to its primary loan request data referral business, BorrowMoney also matches consumers with lenders via website clicks and calls for which it anticipates lenders paying either front-end or back-end fees.
The company is continually working to improve the consumer experience. The company has made investments in technologically-adept personnel and utilizes in-market real-time testing to improve its digital platforms. Additionally, the company works with its lenders, including providing training and other resources, to improve the consumer experience throughout the loan process. Further, the company has been building and improving its My BorrowMoney platform, which provides a relationship-based consumer experience, rather than just a transaction-based experience.
Products
The company reports its revenues in two product categories: mortgage products and non-mortgage products. Non-mortgage products include credit cards, personal loans, home equity loans, reverse mortgage loans, auto loans, small business loans, and student loans. Non-mortgage products also include deposit accounts, home improvement referrals, and other credit products, such as credit repair and debt settlement.
BorrowMoney.com does not charge individual consumers for the use of the company’s services. Commercial loans may have certain service fees attached to their loans. Revenues from the company’s mortgage products plan to be derived from lead generation fees paid by the Network Lenders that receive a loan request, and in some cases upfront fees for clicks or call transfers. Because a given loan request form can be matched with more than one Network Lender, up to five match fees may be generated from a single consumer loan request form. Revenues from the company’s non-mortgage products plan to be derived from upfront match fees paid on delivery of a loan request, click, or call and closed loan fees. For the company’s products, it sends click traffic to issuers and anticipates being paid per approval.
Mortgage Products
The company’s mortgage inquiry products category includes purchase and refinance products.
The company partners with lenders throughout the United States to provide full geographic lending coverage and to offer a complete suite of loan offerings on its marketplace. To participate on its marketplace, lenders are required to enter into contracts that state the terms and conditions for such participation, although these contracts generally may be terminated for convenience by either party. The company performs certain due diligence procedures on prospective new lenders, including screening against a national anti-fraud database maintained by the Mortgage Asset Research Institute, which helps manage risk exposure. The data is utilized to determine whether a lender and its principals are eligible to participate within the company’s marketplace and have not been convicted of and/or penalized for fraudulent activity.
Consumers seeking mortgage loans through the company’s loan marketplace can receive multiple conditional loan offers from participating lenders in response to a single loan request form. The company refers to the process by which the company matches consumers and Network Lenders as the matching process. This matching process consists of the following steps:
Loan Request: Consumers complete a single loan request form with information regarding the type of mortgage loan product they are seeking, loan preferences, and other data. Consumers also consent to a soft inquiry regarding their credit.
Loan Request Form Matching and Transmission: The company’s proprietary systems and technology match a given consumer’s loan request form data, credit profile and geographic location against certain pre-established criteria of Network Lenders, which may be modified from time to time. Once a given loan request passes through the matching process, the loan request is automatically transmitted to up to five participating Network Lenders.
Lender Evaluation and Response: Network Lenders that receive a loan request form evaluate the information contained in it to determine whether to make a conditional loan offer.
Communication of a Conditional Offer: All matched Network Lenders and any conditional offers are presented to the consumer upon completion of the loan request form. Consumers can return to the site and view their offer(s) at any time by logging in to their MyBorrowMoney.com profile. Additionally, matched lenders and offers are also sent to the email address associated with the consumer request.
The company also offers consumers other mortgage marketplace products, such as:
An alternative ‘short-form’ matching process, which provides them with lender contact information rather than conditional offers from Network Lenders, and
A ‘rate table’ loan marketplace, where consumers can enter their loan and credit profile and dynamically view real-time rates from lenders without entering their contact information.
Non-Mortgage Products
Lending Products: Other lending products which will soon be available on the company’s online marketplace include information, tools and access to multiple conditional loan offers for the following:
Auto, which includes the company’s auto refinance and purchase loan products. Auto loans enable consumers to purchase new or used vehicles or refinance an existing loan secured by an automobile.
Home equity loans and lines of credit, which enable homeowners to borrow against the equity in their home, as measured by the difference between the market value of the home and any existing loans secured by the home. Home equity loans are one-time lump sum loans, whereas a home equity line of credit reflects a line of revolving credit where the borrower has flexibility to draw down and repay the line.
Personal loans, which are unsecured obligations generally carrying shorter terms and smaller loan amounts than home mortgages.
Reverse mortgage loans, which are a loan product available to qualifying homeowners age 62 or older.
Small business loans, which include a broad array of financing types, including but not limited to loans secured by working capital, equipment, real estate and other forms of financing, provided to small and medium-sized businesses.
Student loans, which includes both new loans to finance an education and related expenses, as well as refinancing of existing loans.
The company intends to continue adding new lending offerings for consumers, small businesses, and lenders on its online marketplace, in order to grow and diversify its sources of revenue. The company may develop such new offerings through internal product development efforts, strategic business relationships with third parties and/or acquisitions.
Other Products: Other products will be available in the future and will include information, tools and access to the following:
Small business loans, which include a broad array of financing types, including but not limited to loans secured by working capital, equipment, real estate and other forms of financing, provided to small and medium-sized businesses.
Student loans, which include both new loans to finance education and related expenses, as well as refinancing of existing loans.
Deposit accounts, through which consumers can access depository deals and analysis covering all major deposit product categories.
Credit repair, through which consumers can obtain assistance improving their credit profiles, in order to expand and improve loan and other financial product opportunities available to them.
Debt relief services, through which consumers can obtain assistance negotiating existing loans.
Home improvement services, through which consumers have the opportunity to research and find home improvement professional services.
Personal credit data, through which consumers can gain insights into how prospective lenders and other third parties view their credit profiles.
Real estate brokerage services, through which consumers are matched with local realtors who can assist them in their home purchase or sale efforts.
Various consumer insurance products, including home and automobile, through which consumers are matched with insurance lead aggregators to obtain insurance offers.
The company refers to the various purchasers of leads from its other marketplaces as lead purchasers. The company plans to generate revenue from the deposit account product from a consumer clicking from its website through to a financial institution’s website. The company plans to generate revenue through the insurance products and real estate brokerage services through match fees paid to the company by insurance lead aggregators and real estate brokers participating in its online marketplace. The company plans to generate revenue from credit repair and debt relief services either through a fee for a customer referral to a service provider partner or through a fee at the time a consumer enrolls in a program with one of its partners. Revenue for home services is planned to be derived primarily through matching of leads to other home services lead aggregators.
Intellectual Property
The company has over 30 registered domain names.
Regulation and Legal Compliance
The company is subject to a variety of statutes, rules, regulations, policies, and procedures in various jurisdictions in the United States, including:
Restrictions on the manner in which consumer loans are marketed and originated, including, but not limited to, the making of required consumer disclosures, such as the Federal Trade Commission’s Mortgage Advertising Practices (MAP) Rules, federal Truth-in-Lending Act, the federal Equal Credit Opportunity Act, the federal Fair Credit Reporting Act, the federal Fair Housing Act, the federal Real Estate Settlement Procedures Act (RESPA), and similar state laws;
Restrictions imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd Frank Act) and current or future rules promulgated thereunder, including, but not limited to, limitations on fees charged by mortgage lenders, mortgage broker disclosures and rules promulgated by the Consumer Financial Protection Bureau (CFPB), which was created under the Dodd-Frank Act;
Restrictions on the amount and nature of fees that may be charged to lenders and real estate professionals for providing or obtaining consumer loan requests, such as under RESPA;
Federal and state laws relating to the implementation of the Secure and Fair Enforcement of Mortgage Licensing Act of 2008 (the SAFE Act) that require the company to be licensed in all States and the District of Columbia (licensing requirements are applicable to both individuals and/or businesses engaged in the solicitation of or the brokering of residential mortgage loans and/or the brokering of real estate transactions);
State and federal restrictions on the marketing activities conducted by telephone, mail, email, mobile device or the internet, including the Telemarketing Sales Rule (TSR), the Telephone Consumer Protection Act (TCPA), state telemarketing laws, federal and state privacy laws, the CAN-SPAM Act, and the Federal Trade Commission Act and their accompanying regulations and guidelines;
State laws requiring licensure for or otherwise imposing restrictions on the solicitation of or brokering of consumer loans, which could affect the company in its personal loan, automobile loan, student loan, credit card, or other non-mortgage consumer lending businesses;
Restrictions on the usage and storage of consumer credit information, such as those contained in the federal Fair Credit Reporting Act and the federal Credit Repair Organization Act; and
State ‘Bird Dog’ laws, which restrict the amount and nature of fees, if any, that may be charged to consumers for automobile direct and indirect financing.
History
BorrowMoney.com, Inc. was incorporated in the state of Florida in 2000.
