iauto mortgage Launches 'Nation's First Instant Home Equity Loan Auto Purchase Process'

A new financial service provider, iauto mortgage, in conjunction with American Bank, FSB, on April 16 successfully employed its Web-based technology to assist in the procurement of a home equity loan where all loan proceeds were devoted to an auto purchase.

Bill Salladin, of Cockeysville, Md., purchased a 2001 Ford F-150 truck from Plaza Ford automobile dealership in Belair using his home equity to finance the $38,500 purchase with the assistance of Baltimore-based iauto mortgage.

Founded by Scott Steele, a veteran of the real estate information services industry, iauto mortgage developed a process that allows homeowners to finance automobile purchases with the proceeds of a home equity loan that originates through and is executed at the dealership.

In addition, a consumer Web site will soon be launched to allow potential buyers to obtain pre-approval for an iauto mortgage enabled home equity loan. The iauto mortgage process facilitates instant loan approval, underwriting and closing, unlike traditional home equity financing which can often take weeks to approve and complete.

The concept of using home equity loan proceeds to finance an auto purchase is not new, but in the past, the process often required lengthy waiting periods, appraisal services, bank meetings, and copious document execution.

iauto mortgage's streamlined process allows consumers to obtain a home equity loan without leaving the showroom floor, according to company officials. Together with the standard rescission rights contained in any home equity loan, the benefits to consumers include potential tax write-offs for home equity loan interest, increased loan payoff flexibility, competitive fixed or variable rates, and no down payment.

Some of the largest auto financing companies in the world tried for some time to create an instant home equity loan product, but it took a team of experienced home financing industry veterans led by Steele, to deliver it to the auto industry. Steele created Steele Software Systems Corporation (3S) in 1989.

Today 3S provides automated residential information services to some of the premier lending institutions nationwide. Conceived by Steele in 1998, iauto mortgage incorporated in 2000. The management team is comprised of executives from the real estate, banking and mortgage industries.