I was recently mentioned in one of the articles in the May, 2008 edition of SmartMoney. About 2 months back I received an email from the author of the article Anne Kadet, asking to talk to me over the phone about my experience with Bank of America during my hunt for a mortgage. But a funny thing happened on the way to closing the deal on his first home. After reviewing his application, he says, a Bank of America representative offered him a rate of 6.5%, nowhere near as good as the 5.8% to 6.2% rates he had been quoted from other lenders. And the difference wasn't lunch money: Had he gone with Bank of America (BAC), his mortgage payments, over the life of the loan, would have cost an extra $21,000 more than the deal he ultimately accepted. "They were higher than anybody, and I don't know why," he says of his branch's offer.
She as writing about a practice that was now being used by banks called "Price Profiling". Price profiling is a very common practice in the travel industry, but Banks ??
Here is an excerpt of the article.TUSHAR MATHUR HAD every reason to expect Bank of America's best deal on a mortgage. After all, the 31-year-old software developer kept a checking account and a credit card with the giant consumer bank. He had a ridiculously high credit score — 785 — and was willing to make a 20% down payment on a brand-new four-bedroom colonial in the Atlanta suburbs.
You can read the entire article here.
Banks Are Latest Industry to Try Optimized Pricing By Anne Kadet
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Friday, May 9, 2008
Tushar Mathur, mentioned in SmartMoney magazine
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5 comments:
Did you take the offer? I doubt this kind of price optimization would work.
Nope. I got a better deal with my builder that was 0.5% less than the BofA offer. My builder also paid my closing costs.
That is pretty cool to be mentioned in an article like that
Yea, pretty slick that you were mentioned! Congrats on it! Has it sent you a lot of new traffic?
Hank, no traffic from SmartMoney because they did not mention my blog.
Too bad.
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