A new direct mortgage lender has launched aiming to disrupt the market and has taken the opportunity to hit out at traditional lenders’ business models.
Eave has launched in Colorado offering a 60% automated process which it says has “re-envisioned” the whole mortgage experience.
The firm says it helps creditworthy homebuyers compete with all-cash buyers, offering jumbo loans for buyers of homes priced $665,000-$8 million.
Eave was founded by former Capital One executive Saro Vasudevan, Hailo executive Jack McCambridge, and Foursquare manager Anoop Ranganath. Market development is led by former Trulia executive Christina Nugent.
Vasudevan claims that Eave has a better business model than most traditional mortgage lenders, writing on the company’s Medium.com page that it is not relying on the “gimmicks” used by traditional lenders, who “scrape by on fees that cover for their inefficiencies.”
The direct lender says that its rates are comparable with those offered by banks to their best customers, and that its mortgage loans are closed within 21 days, using online processes and loan officers.
"They're very impressive, especially in such a fast-moving market as Denver. Because we're facing a lot of cash buyers, the difference between a two-week closing and a three-week closing is substantial," said Elizabeth Sacerdoti of the Coakley Sacerdoti Team of Kentwood Real Estate. "Getting the mortgage done ahead of time is increasingly going to impress listing agents."
Eave says that it plans to expand to other markets within the next year.
More market update: