A strategic shift by E-Loan prompted two analysts to downgrade its stock over concerns that the online lender's revenues would fall in the short term.

The Dublin, Calif., company said it would cut its famously lavish marketing expenses by 30% in the second half of the year and focus on making sure that shoppers who visit its site end up taking out loans. Though 30% of all mortgage borrowers are using the Internet to shop and research, few actually close online, E-Loan executives said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.