Mom Was Wrong - There is Such a Thing as a Free Lunch

December 18, 2006

If your mom was anything like mine, you probably heard the saying - “There’s no free lunch.” Well, when it comes to loan origination software, Mom was wrong and here’s why.

Since LoanAce launched in August of this year it has attracted a lot of press and a lot of customers. In fact, more than 2,000 companies have chosen LoanAce, powered by TeraVendo, as their solution for loan origination software. Yet two questions persist: “Why is it free?” and “Can it be good if it is free?”

Why is LoanAce free? Because, and here is the dirty little secret, most loan origination systems shouldn’t have to charge their users. Vendors pay for advertising and/or the opportunity to deliver services to loan originators through loan origination systems (e.g. title and escrow orders, leads, lender placement engine, etc). We didn’t feel right about making money because of your activity AND charging you. Think of LoanAce as the Google of the loan origination software world.

Google is an acknowledged leader in the world of Internet search, offering a bevy of useful – and free – products to customers. How does Google make money? By selling unobtrusive space to companies that want to advertise through Google’s products. You don’t have to use the advertising produced through Google’s applications, but many people do and Google makes money, and Google remains free.

Would you ever pay for search on the Internet? Of course not. Paying for your loan software is basically like paying to search on the Internet.

Most of our competitors charge you, in some cases hundreds, and in other cases thousands of dollars per year in update fees. Then, they turn around and charge vendors to gain access to you through the software you purchased. It’s a trip down “double-dip” road. You are paying to be someone's advertising target.

Early on, we decided to take a different approach. We knew that if our passion were to benefit you, the originators, then you would respond in kind by using LoanAce and the bundled services. It is a big “win-win.” We didn’t feel that charging you $100, $200, $500, $20,000 a year plus profiting from our vendor relationships was good business. I mean, they don’t charge me when I walk into the grocery store. They just expect I’ll buy some groceries. We don’t charge LoanAce members to use the software; we just expect they’ll use the services.

So the question remains; can it be good if it is free?

Absolutely! We’ve invested a lot of capital and two years making sure LoanAce was able to compete in the marketplace. Now, more than 2,000 companies trust LoanAce for their livelihood. Their support proves that we have done a good job. But don’t take my word for it. Look at the data from a recent survey:

More than 85% of LoanAce users were satisfied/very satisfied with the, “features, functionality, and the overall value” of LoanAce. Four out of five users say they are likely to recommend LoanAce to a colleague. Those are extraordinary results for a new software product in a competitive market.

Free is not just good, it’s great. And it is just the beginning. We are continuing to develop and improve LoanAce. We regularly ask our users how we can improve our product and respond to their requests. We will work tirelessly being the best LOS, with the best customer service, at the best price (free!) on the market.

So there are no more excuses. It’s free. It’s good. It’s time to switch. All you have to do is go to www.loanace.com and click “Download now.” Then give your Mom a call and let her know you just had a free lunch.

Source: http://originatortimes.com/content/templates/contrib.aspx?articleid=2225&zoneid=7

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