Tree.com Inc. said Friday its net loss narrowed 67% from a year earlier to $7.4 million in the third quarter, though the results were worse than in the second quarter, when the company made about $700,000.

The Charlotte mortgage bank and lead generator, which runs the LendingTree.com Web site, said it had expected to break even on the basis of adjusted earnings before interest, taxes, depreciation and amortization. But a $4.2 million increase in the provision for loan losses and $1 million of unexpected legal costs drove adjusted EBITDA to negative-$3.5 million.

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