Online mortgage loan

GoLoan, the online mortgage services company designed to allow residential real estate brokers and their sales representatives to reap loan origination fees in addition to their normal sales commissions, reported an 82% increase in the number of brokers signing up for its services over the same two-month period in 2001.

According to officials of the California-based mortgage banking company, which utilizes the Internet to provide traditional mortgages through Realtors, the firm has reported rising revenues and profits since its inception three years ago.

"At this point, GoLoan is almost the only option for online mortgage services," said Adi Harari, founder and president of GoLoan, a division of Delta Home Loans, a 12-year-old mortgage-banking firm based in Beverly Hills. "Others who have entered the field have under-performed or failed."

Harari lists the following for the company's success:

* Mortgage Origination fees are paid to brokers and, subsequently, to the sales representative who was involved in the sale.

* Approval of prospective borrowers in 90 seconds from the time an initial one-page form is completed and submitted online to GoLoan.

* Experienced loan experts who handle every aspect of the lending process, from approval to closing.

* Easy-to-understand and utilize online format.

* Wide variety of loans and loan programs from standard, 30-year fixed rate mortgages to a variety of other loan types.

"Although I was convinced this would be a major success among brokers, I still had to convince them and their sales reps, and getting their attention is not often very easy," said Harari.

Skeptical brokers at first questioned how they could profit and how much time it would take in addition to closing the already form-laden sales transaction.

In response, Harari informed brokers that they would receive the entire loan origination fee for simply filling out one page of information online, submit supporting documents and completing several other tasks that are designated and tracked on GoLoan's Web site. GoLoan then coordinates the entire loan process, including title insurance, income verification, lenders, and all other required documentation.

"Although there is some interaction with the brokers required after this point, it is kept to a minimum," said Harari. "For this simple move -- filling out one page about the buyers and completing a number of tasks in compliance with RESPA federal guidelines -- the broker and sales representative earn the entire origination fee."

Harari thought it would be an easy task to convince brokers and their sales representatives. But it wasn't that easy, Harari admitted, because brokers and their sales representatives, despite the ability to increase their own profits, often are intimidated by adding what they may view as another major task they must now complete to close the transaction.

"Once the broker understands how simple the GoLoan program is, he usually signs up with us on the spot," said Harari.

Backed by Delta Home Loans and its mortgage bank, GoLoan evaluates buyers on their creditworthiness and, within 90 seconds, the buyer knows if GoLoan has, approved or denied the loan request. If denied, the file may be forwarded electronically to another lender of the Realtor's choice, allowing the borrower and sales representative to have a second opinion.