Bank Of America To Sell Online Auto Loan Unit - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Bank Of America To Sell Online Auto Loan Unit

Bank of America has agreed to sell its stake in online auto-loan firm CarFinance.com to Internet mortgage broker Eloan Inc. in a deal that signals broad cooperation between the banking giant and the residential lender.

Eloan said yesterday it will swap about 2.9 million shares of its stock in exchange for CarFinance.com, which is 80% owned by Bank of America and 20% by individuals, including its founder and president Robert Ferber. The deal is valued at about $83 million following a nearly 25% surge in Eloan stock Tuesday from $25 to more than $29 in midday trading.

After the deal closes later this year, Bank of America will own about 4% of Eloan, and its president, Kenneth Lewis, will join Eloan's board of directors. Ferber will continue to operate CarFinance.com as a division of Eloan.

The agreement, which combines the country's largest bank and a leading online mortgage provider, gives Bank of America a stake in the online mortgage business while allowing Eloan to extend its financial services into a second line of lending.

Bank of America already funds loans originated by Eloan, but the companies say they expect that business to expand as they cooperate to distribute various financial products through Eloan's Internet channels.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
The State of Chatbots: Pandemic Edition
Jessica Davis, Senior Editor, Enterprise Apps,  9/10/2020
Commentary
Deloitte on Cloud, the Edge, and Enterprise Expectations
Joao-Pierre S. Ruth, Senior Writer,  9/14/2020
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll