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.”


  • by Do your Homework | 11/27/2015 1:48:39 PM

    The author fails to note that Lenda was fined 2 months ago by Oregon for failing to file its required 2014 annual financial report by March 31, 2015. They didn't file until August 2015. They have no other state licenses besides the 3 mentioned in the article. Not easy to do a roll out when you're not licensed anywhere else. Check www.nmlsconsumeraccess.org for yourself. Then look at Google street view of Lenda's official address. Not exactly the thing of a national "roll out." THEN look at the employment history of the guy running Lenda. Turns out he's also the president of the "Kingdom of Real Estate" since 2007 - I couldn't make that up - Hedging his bets in case Lenda goes splat? This guy might be a marketing whiz for getting all you fools to write about him, but no real mortgage officer should be scared of him.


Is TILA-RESPA a good or bad thing long term?