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Investors see future in online mortgage origination

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Mortgage Professional America | 20 Feb 2015, 08:35 AM Agree 0
An online mortgage marketplace startup, which says it can close mortgages for customers in as few as 15 days, has raised another $5 million in hopes of increasing its presence even more in the mortgage industry.
  • Wm Natz | | 20 Feb 2015, 10:51 AM Agree 0
    This will create more problems. A major cause of the mortgage crisis was that borrowers were never properly advised about mortgage options so that they could get the mortgage best-suited to their plans. An on-line, quick close approach does nothing to improve the quality of up-front analysis and counsling.
  • Cheryl | | 20 Feb 2015, 11:01 AM Agree 0
    15 Days, yeh right (there a lot that goes into that...or not) Tread lightly, with your 5 million; in the last 3 months I've been "fixing" those online mortgages (over a 1/2 dzn. at last count) that have been engineered to amaze. I'm not amazed, so hopefully when you hire your 5 new executives, first they know the mortgage industry inside and out, all of them have different perspectives, creativity and with "some" tech skills, oh and you're willing to pay them something other than an entry level "college graduate" salary. I'm glad to see what was suppose to be one of the most important purchases in ones' lifetime has now been categorized to Look how many years of experience and the technology it took to be able to teach school/college course online from pre k,graduate school, etc...the mortgage industry has done it an 1/8 of that time, not sure that makes sense yet? From what I've seen in the past 3 months we lack the experience, sure we all have computers but from what I've seen if you can't do it in your head first (or on paper), garbage in garbage out...the computer is missing key guidelines requirements (and so are individuals) to make a computer "originate" a mortgage.

    I still say we have problems with mlo licensing in this industry and the inequality of that. There should be a full proof system of technology to weed out the bad in this area, but we've just skipped over that and moved onto another picture. Still doesn't make sense to me.
  • KeepItReal | | 20 Feb 2015, 02:39 PM Agree 0
    Note their site says they'll close "in as few as 15 days". Couldn't every lender who's ever closed a mortgage in that time span say the same thing?
  • Chris | | 20 Feb 2015, 03:53 PM Agree 0
    Making 1.25% on every mortgage will be their downfall. No company can pay stockholders, management, staff and overhead on that amount. Our mortgage biz has become more labor intensive. Castle and Cook says their mortgages can be closed in 8 days. Afterall wasn't the world completed in 8 days.
  • griff | | 25 Feb 2015, 08:20 AM Agree 0
    Interesting concept if you don't have any of the borrower's I have. Those who move money around from account to account, deposit funds randomly, write contracts without prequalifying, appraisers who suck. I rarely see an easy deal. I cannot imagine some call center handling these problems. When and if it does happen will it be offshore? If so that will be the death of it.
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