1 minute readA lawsuit filed by online mortgage loan aggregate LendingTree alleges that technology provider Mortech infringed on the operating business agreement between the two firms when the latter decided to partner with websearch behemoth Google. According to the lawsuit, Mortech, whose technology helps automate lender offers to potential borrowers, violated its contractual covenants by partnering with Google to launch an online mortgage loan aggregate service similar to that offered by LendingTree. “We will vigorously protect our contractual rights, our company, our customers and our clients in this matter,” said Doug Lebda, CEO and Founder of LendingTree, in a statement. Mortech is not commenting at this time. LendingTree also asserts that it tried several different resolution options before deciding to file the lawsuit, which will have its first hearing on September 2. In the meantime, by filing a restraining order and injunction against both entities, LendingTree hopes to delay the launch of any such product before having its day in court. Figures provided by LendingTree state that the website to date, processed 25 million loan requests and $185bn in closed loan transactions. However, how many of these loans relate to mortgages, as opposed to other asset classes such as credit cards, is not yet publicly available. Google, for its part, is increasing its presence in the mortgage-search related market. HousingWire’s sister publication REO Insider is reporting in its September 1 issue that Google is now listing REO property information via its Google maps platform. Write to Jacob Gaffney.
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
