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| E*TRADE FINANCIAL Helps Consumers Tap Their Home Equity in 24 Hours |
Ground-breaking Home Equity Product Gives Consumers Cash-in-Hand in One Week
NEW YORK, June 23 /PRNewswire-FirstCall/ -- E*TRADE FINANCIAL Corporation
(NYSE: ET) today announced that E*TRADE Bank launched EquityExpress, a new
home equity program that enables customers to secure a home equity loan or
line of credit in as little as 24 hours(1) and to obtain their loan funds in
as little as one week. With EquityExpress, E*TRADE Bank sends loan closing
papers to the customer in 24 hours, a fraction of the industry average
application-to-approval cycle of 12 days(*).
"Obtaining a home equity line of credit with E*TRADE's EquityExpress was
very fast, easy and straight forward," said Nora Zerounian, a recent E*TRADE
EquityExpress customer. "I was able to do the process online and with two
kids at home, quick and easy was exactly what I needed."
E*TRADE Bank developed EquityExpress to provide customers with a
straightforward and quick means of tapping their home's equity, while reducing
the amount of paperwork required. E*TRADE Bank employs three strategies to
meet its delivery goal: (1.) automated property valuation appraisal; (2.)
stated income; and (3.) a streamlined title process. In addition, customers
pay no application fees or closing costs to obtain the loan or line of
credit.(2)
"E*TRADE FINANCIAL is committed to innovating on behalf of the consumer,
delivering tangible value through products and services like EquityExpress
where others have not," said Arlen Gelbard, chief banking officer and
president, E*TRADE Bank. "With EquityExpress we have capitalized on
innovative technologies to deliver a faster and easier home equity solution to
our customers."
E*TRADE Bank offers home equity loans in five, 10, 15 or 20 year terms at
competitive rates and home equity lines of credit (HELOC)(3) with introductory
annual percentage rates as low as 2.99 percent(4) APR. In addition, customers
who choose to make their payments automatically from an E*TRADE Bank or
E*TRADE Securities account will receive a 0.25 percent interest rate
discount.(5) As an additional benefit, E*TRADE Bank's Quick Transfer service
allows customers to move money easily between E*TRADE accounts like checking,
brokerage, home equity, etc.(6)
EquityExpress can be found at http://www.etrade.com/equityexpress or by calling
1-800-470-0999.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provide financial services
including brokerage, banking and lending for retail, corporate and
institutional customers. Securities products and services are offered by
E*TRADE Securities LLC (Member NASD/SIPC). Bank and lending products and
services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or
its subsidiaries.
* Industry average of 12.11 days from application to final approval
according to the Consumer Bankers Association's 2003 Home Equity Loan
Study.
(1) Includes borrower credit approval, application process and
generation of loan closing documents. The Equity Express program is
available for home equity loans and lines of credit up to $250,000
and is subject to credit worthiness including credit score, credit
history and other factors. E*TRADE Bank must be able to calculate an
acceptable loan to value ratio on the subject property via an
Automated Valuation or an acceptable third party appraisal as well
as verify home ownership. Automated Valuations are acceptable only
on loan amounts less than $150,000. If required, proof of income and
pay-off statements (if applicable) must be provided at time of
application.
(2) There are no application fees or closing costs associated with
E*TRADE Bank's home equity line of credit. Borrowers are required to
pay applicable mortgage taxes. Property insurance is required. The
home equity line of credit has an annual fee of $50. This fee is
waived for the first year. Borrowers may prepay all or any amount
owing under their home equity credit line at any time without
penalty, as long as the account is not closed. If a borrower closes
the account within 24 months of opening it, which would include a
situation where the borrower sells a home and pays off the line,
E*TRADE Bank will charge the borrower an early account closure
penalty of $300.
(3) The minimum loan amount is $7,500 (the minimum loan amount in AZ is
$10,001). The maximum loan amount is $500,000 at 80% combined loan-
to-value (CLTV) and may vary based on your creditworthiness. Equity
lines are not available in AK, HI, SC, TX and Cleveland, OH.
(4) Annual Percentage Rate (APR) of 2.99% applies for a 90-day
introductory period. The APR after the 90-day period will be a
variable rate equal to the Prime Rate as published in the Wall
Street Journal plus a margin. Margin rates vary from 0.00% to 2.60%
over the Prime Rate. Published Prime Rate as of 6/15/04 is 4.00% and
is subject to change. Non-introductory rate is 4.00% to 6.60% as of
6/15/04. Maximum APR that can apply is 24%.
(5) An additional 0.25% discount will be applied if the loan is set up
for automatic payment using your E*TRADE Bank or E*TRADE Securities
brokerage account. Rate discount does not apply during the 90-day
introductory period. Please visit homeequity.etrade.com and click on
the Auto Debit Discount link for details.
(6) Transfers between E*TRADE Bank accounts are posted on the same
business day. Transfers between E*TRADE Bank account and E*TRADE
Securities brokerage accounts requested before 5:30 p.m. ET are
posted on the same business day. Transfers requested after 5:30 p.m.
ET are posted the next business day. Transfers are limited to one
per day per brokerage account, either to or from the account. Real-
time cash transfer feature is not available on holidays, weekends,
or after 5:30 pm ET on weekdays.
Important Notice
E*TRADE FINANCIAL and the E*TRADE FINANCIAL logo is a registered trademark
or trademark of E*TRADE FINANCIAL Corporation. The statements contained in
this news release that are forward-looking are based on current expectations
that are subject to a number of uncertainties and risks, and actual results
may differ materially. The uncertainties and risks include, but are not
limited to, changes in market activity, anticipated increases in the rate of
new customer acquisition, the conversion of new visitors to the site to
customers, the activity of customers and assets held at the institution,
seasonality, the development and enhancement of products and services,
competitive pressures (including price competition), system failures, economic
and political conditions, changes in consumer behavior and the introduction of
competing products having technological and/or other advantages. Further
information about these risks and uncertainties can be found in the
information included in the annual reports previously filed by E*TRADE Group,
Inc. or E*TRADE FINANCIAL Corporation with the SEC on Form 10-K (including
information under the caption "Risk Factors") and quarterly reports on Form
10-Q.
E*TRADE FINANCIAL Media Contact
Pam Erickson
E*TRADE FINANCIAL Corporation
617-296-6080
pam.erickson@etrade.com
E*TRADE FINANCIAL Investor Relations Contact
Adam Townsend
E*TRADE FINANCIAL Corporation
703-236-8719
adam.townsend@etrade.com
SOURCE E*TRADE FINANCIAL Corporation
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CONTACT:
Media, Pam Erickson, +1-617-296-6080, or
pam.erickson@etrade.com, or investors, Adam Townsend,
+1-703-236-8719, or adam.townsend@etrade.com, both of E*TRADE
FINANCIAL Corporation
