Schwab Enters Mortgage Biz With Guarantees

The Charles Schwab Corp., the San Francisco-based parent of discount broker Charles Schwab & Co., has announced that it will offer best-price and service guarantees on home mortgage loans through its newly established Charles Schwab Bank.Schwab said the bank will: beat any lender's price on a home-purchase or refinancing loan by $100, or give consumers $500 ($750 in California) if they close with another lender; approve a loan decision within 24 hours or pay consumers $250; and meet agreed-upon closing dates or reduce a homebuyer's interest rate by one-eighth of a percent for the life of the loan. "Our clients have told us that when it comes to mortgages, they're tired of confusing terms, hidden fees, and inconsistent service," said David S. Pottruck, Schwab's president and co-chief executive officer. "Schwab Bank's value proposition is clear: you will know what it will cost, you will know there is a best-price guarantee, and you will receive a loan decision within 24 hours." Schwab said the bank will offer a wide variety of fixed- and adjustable-rate mortgages as well as "comprehensive support and advice" on all aspects of the loan process. Schwab mortgage consultants can be found online at http://www.schwabbankmortgage.com.