LendingTree Borrower Health Report: Rising Home Prices Cause Borrower Health to Fall Slightly in Q3

 LendingTree Borrower Health Report: Rising Home Prices Cause Borrower Health
                            to Fall Slightly in Q3

PR Newswire

CHARLOTTE, N.C., Oct. 30, 2013

CHARLOTTE, N.C., Oct. 30, 2013 /PRNewswire/ --The financial health of
prospective borrowers dipped slightly in the third quarter, according to
LendingTree's Borrower Health Report, released today. The report analyzes the
financial health of mortgage-seekers and assigns a Borrower Health Score used
in the ranking of each state.

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(Logo: http://photos.prnewswire.com/prnh/20110518/MM04455LOGO )

During the third quarter, the average loan-to-value [LTV] ratio of potential
borrowers increased from 88.4% to 89.8%, suggesting that rising home prices
placed more financial pressure on potential borrowers. Because LTVs are a key
qualifying factor, the increase in LTVs likely resulted in a decline of the
Borrower Health Score, which fell 1.56 points to 79.94 in the third quarter.
Additionally, the average credit score of prospective borrowers fell four
points quarter-over-quarter from 640 to 636

Although borrowers may not be in top condition, the Borrower Health Score is
7.28 points above where it was just a year earlier. This year-over-year
improvement implies that mortgage-seekers are in relatively good health and
that there is broader trend of improving borrower qualification levels.

Hawaii, Washington D.C., New Jersey, California and Massachusetts continue to
lead the nation with the healthiest prospective borrowers, all with scores
above 90. The average LTV ratios and credit scores for the top five states
are below.

State LTV Ratio Avg. Credit Score
HI    89.66%    689
DC    86.45%    679
NJ    88.48%    677
CA    85.60%    676
MA    85.60%    679

"Because home prices have been steadily increasing, this minor slip in the
Borrower Health Score isn't necessarily unsettling," said Doug Lebda, founder
and CEO of LendingTree. "In order for the housing market to maintain and
improve home prices, there needs to be a growing pool of well-qualified
borrowers in the market for homes. Housing market recovery is geographically
dispersed and dependent on the overall jobs market as well. States that ranked
high in LendingTree's Borrower Health Report had enough highly qualified,
active borrowers to support the higher home prices."

For a full ranking and the infograph in PDF versions, please visit the
following links:
Full Data: http://marketing.lendingtree.com/pr/Borrower_Health_Q3_2013.pdf

About LendingTree, LLC
LendingTree, LLC is the nation's leading online source for competitive home
loan offers, empowering consumers during the mortgage, refinance or auto loan
process. LendingTree provides an online marketplace which connects consumers
with multiple lenders that compete for their business, as well as an array of
online tools and information to help consumers find the best loan. Since
inception, LendingTree has facilitated more than 30 million loan requests and
$214 billion in closed loan transactions. LendingTree provides access to
lenders offering mortgages and refinance loans, home equity loans/lines of
credit, and more. LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ:
TREE). For more information go to www.lendingtree.com, dial 800-555-TREE, join
our Facebook page and/or follow us on Twitter @LendingTree.

Megan Greuling
(704) 943-8208

SOURCE LendingTree, LLC

Website: http://www.lendingtree.com
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