LendingTree is pursuing a bold strategy as it spins off from IAC to become an independent, publicly traded organization (Tree.com, Inc., eventually traded as TREE). After going through a painful right-sizing of its traditional mortgage lead generation operations it is now getting bigger, not smaller. The new company Tree.com is building a bigger vision, according to Charlotte Business Journal coverage and SEC filings:

According to a filing with the Securities and Exchange Commission, Tree.com will be the parent company of businesses that include GetSmart.com and RealEstate.com as well as LendingTree, an online lending and real estate-services exchange.

Meanwhile, LendingTree plans to start a service, dubbed TuitionTree, that addresses funding for college costs. Slated for a late June launch, the Web site will offer an online exchange where lenders compete to provide student loans. The model is similar to how home buyers obtain mortgage loans through LendingTree.

This bigger vision is also speculated to be a strategic packaging and growth of this asset into an attractive acquisition target. This hypothesis is captured in Motley Fool’s recent coverage of IAC’s recent sale of Entertainment Publications:

IAC (Nasdaq: IACI) is selling Entertainment Publications to a private equity firm in a deal valued at about $135 million after the accompanying tax benefit is applied.

which also includes some speculation on synergies for IAC’s LendingTree and RealEstate.com:

Even IAC’s problematic Lending Tree and RealEstate.com may find a suitor between ZipRealty (Nasdaq: ZIPR) and HouseValues (Nasdaq: SOLD).

I think all of this spells good things for LendingTree and it’s Lender’s Network as they, like most businesses linked to the mortgage market, reshape their businesses for a different credit market.

I will also interject a personal note. There are several strong trends I am seeing, in Kaleidico’s lenders’ network, as it applies to LendingTree’s approach to challenging markets:

• A strong focus on fulfilling customer (borrowers) expectations. When prospective borrowers make an inquiry through LendingTree.com a promise of excellence is made, and LendingTree is defending that promise with passion. This means fast, accurate offers, and highly responsive lender follow-up.
• Although LendingTree is famous for it’s strong support to it’s Lender’s Network, I am seeing even more collaboration with lenders to find overall solutions, not just leads, to their market challenges.

LendingTree seems to be making the right adjustments and building a growth strategy to support acquisition or an ongoing standalone company.

If you haven’t talked to LendingTree or GetSmart in awhile a call may leave you pleasantly surprised and holding a few more ideas on how to grow your mortgage business in this market.