Blend, a San Francisco-based startup that partners with big banks to re-imagine the mortgage borrowing experience, today announced plans to open a marketplace for home finance innovation. Like an app store, the new Blend Marketplace invites companies that service the mortgage industry to sell digital tools through its platform.
Lennar plans to begin using mortgage-application technology from Blend, a San Francisco-based startup, that allows consumers to apply for a mortgage online or on their phone. Executives say that the technology can shave as many as 10 days off the process of applying for a mortgage.
It’s no secret that the mortgage process is broken,” wrote Nima Ghamsari, Blend’s charismatic CEO and co-founder, in a company blog. “Ask anyone in the industry, and they’ll nod in agreement; mention the phrase ‘stare and compare,’ and people cringe with recognition. Start trying to explain the problem and consumers and lenders alike will finish your sentence with all the reasons things aren’t working.
Blend, a Silicon Valley technology company propelling the consumer lending industry into the digital age, announced it became the first end-to-end platform to be approved to provide asset verification reports for Fannie’s Desktop Underwriter.
Blend makes digital tools for mortgage lenders and tells LinkedIn that its clients control about a quarter of the $10 trillion mortgage lending industry.
“Our application accuracy has gone up, which has cleared up issues in the back office,” Sessler said. “There are no missing pages of a bank statement, no wrong Social Security numbers, because the borrower is getting the information directly from a provider.”
The five-year-old San Francisco firm is expected to announce its new customers Thursday along with a fresh $100 million fundraising round.
Blend’s technology offers banks an easy upgrade, compliant with regulatory demands and far cheaper than the $7,000 or so that a paper-based mortgage origination typically costs.
Since launching five years ago, Blend has helped major financial institutions make lending decisions to consumers, in many cases narrowing the time it takes to close a mortgage by seven to 10 days.
For many large lenders, processing and creating mortgages costs a lot of money, explained Blend CEO Nima Ghamsari. In fact, he estimated that banks spend $7,000 per loan on labor cost and other details.