Kevin Simback and Josie Lee seeded the list of US companies using technology in the broad Digital Mortgage Market – MortgageTech. I keep the conversation categorization and add on a few names.
1 – Mortgage Enterprise Solutions – this includes offering Loan origination system (LOS) providers, marketing/lead gen/application/underwriting/fulfillment/closing platforms, servicing platforms and other component solutions targeted primarily towards originators, issuers and servicers.
2 – Tech-Enabled Mortgage Lenders – companies who are in the business of originating mortgages directly to consumers. Also any form of tech-enabled brokerages, as long as the company has responsibility for taking the customer’s application all the way through underwriting and funding decision.
In this broad category, Quicken/Rocket is the old time disruptor in the space that continues to innovate. Rocket is their new digital Launchpad already in the App store. However, they aren’t using any alternative data for credit scoring and approval. Sofi, on the other hand is using a different approach to this process for the approval of home loans. Bank of America, BoFa, is window dressing their processes by adverysiing a mobile mortgage approval process in this video. Along the same lines, an crossing over to Europe, Rabobank launched an Online mobile mortgage advice via video chat, In partnership with 24sessions, whose motto is to technology for online advice. In Germany, Interhyp, is already the best Mortgage provider for close to 10yrs. This is the fintech that ING has been operating successfully and covers more than 400 German lenders.
3 – Mortgage Data and Analytics Providers – companies aggregating and/or supplying data to mortgage originators, issuers, investors or servicers.
CE Anlytics, Cignifi, Loanlogix, Scorelogix, Nomis Solutions
I add four additional, more alternative startups that will enrich the conversation since they are worth monitoring.
Income& (Income And) that is offering investors access to PRIMO investing. In plain words, an alternative fixed income investment into to Prime rated individual mortgages. This is P2P investing focused on prime mortgages. The company launched early 2016, so very early stage.
Coinshark.io, is an app focused in the P2P lending space. They offer the ability to pay your loan with Bitcoin. Housing payments often are a large part of family budgets and for those compensated in bitcoin, this is app is useful and at the same, is storing all the relevant data.
Freedom Mortgage, an incumbent mortgage lender in the US, that is independent and privately held, has launched through a subsidiary BigFreedom, which is an App using Chatbot technology (watch a demo here) and aspiring to become an true online lender, the Uber of lending as they claim on AngelList.
Jungo is the mortgage app from Salesforce. But it is also the name of a Dutch startup (now over to Europe) that is looking to disrupt the mortgage market through crowd funding. They recently got approval from AMF to operate the P2P funding of mortgages form the crowd. In Holland there are already SamenInGeld and MetElkaarhypotheek of Obvion operating.
The conversation will continue on the Fintech Genome. The list is a starter; the challenges of the mortgage market are another broad topic that the community has started touching upon.
Daily Fintech Advisers provides strategic consulting to organizations with business and investment interests in Fintech & operates the Fintech Genome P2P Knowledge Network. Efi Pylarinou is a Digital Wealth Management thought leader.