Originator: Refi platform will hurt clients

by Justin da Rosa27 Nov 2015
Originators have enjoyed a boom in refi business this year – but so has an online originating option. What if the trend continues?

“It is the same thing as the Google Mortgage rates, I do not think it is good; The people of the United States will lose out on the advice from professionals just to try to save a buck,” Nick Bachusky, a Canadian-based mortgage broker, told Mortgage Professional America. “(Clients) could be leaving other options on the table that would be more beneficial and negatively affecting their financial plan.”

Lenda, a platform that allows homeowners to refinance their mortgages completely online, announced earlier this week it had raised $2 million in funding from a number of investors.

Since its inception in summer 2014, Lenda has processed over $60 million in loans for owners in California, Washington, and Oregon.

The company has a further rollout planned in early 2016.

While Bachusky, who has a background in software engineering, understands the reasoning behind launching such a company, he argues these online services could be detrimental to homeowners’ financial plans.

“I understand how people in this industry can recognize a process to use the technology available to create some easy, passive income for themselves,” he said. “But ultimately it hurts the people I care about: (homeowners. We will continue to see the trends of debt increase with this.”

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