Like many online banks in 2008, E-Trade got hit pretty hard by the financial industry’s collapse. You may even recall that in early 2009, E-Trade sold its online savings accounts to Discover Bank to narrow it’s focus back to their basics – online brokering. However, according to an E-Trade spokesman, they are getting back into the mortgage game (kind of). TheStreet.com reported in March of 2009, that E*Trades re-emergence in the mortgage business is simply an outsource to PHH. They then cited the following:
“PHH Corp. of Mount Laurel, N.J. will take care of most aspects of the loan, including the processing, underwriting and servicing, while E*Trade will market the loans and help collect the necessary borrower information, E*Trade spokeswoman Pam Erickson said. ”
It also appears that E-Trade’s new mortgage center doesn’t really accommodate new home buyers as their products primarily consist of refinancing existing home loans.
Mortgage Rates provided by E-Trade:
(Rates as of 8/31/2010. See updated rates from E-Trade and hundreds of other banks in our mortgage center.)
- 30 year fixed rate mortgage with APR of 4.419%.
- 15 year fixed rate mortgage with APR of 4.020%.
- 7 year ARM (adjustable rate mortgage) with APR of 3.396%
- 5 year ARM (adjustable rate mortgage) with APR of 3.268%.
- 7 year interest only mortgage with APR of 3.415%.
- 5 year interest only mortgage with APR of 3.270%.
E-Trade Bank Complaints and Consumer Reviews:
We tracked down a number of consumer reviews regarding E-Trade’s mortgage division but we wont list them all here. Stop over at ConsumerAffairs.com to see the 221 registered complaints they have if you’d like to read them.
As with all online reviews, take them with a grain of salt. Reviews are done anonymously so theoretically they could be written by anyone. The good reviews could very well be E-Trade employees and the bad reviews might even be made up of one very disgruntled customer under many aliases.
That being said, most of the registered complaints had to deal with untimely delivery of the mortgage loan or misleading rate quotes.