Marketplace and brokers are mortgage middlemen
The easiest way for tech startups to enter the mortgage market is by serving as a middleman. So that's what you'll encounter most in your search for online mortgage.
Mortgage marketplaces, like lending tree, mortgage hippo, zillow and eloan. Are lead generators for loan originators. Here's how that work: Their mortgage rate algorithm takes your basic application info. and present you a roster of potential lenders. You chose one, or several , of the rate options,and the referring, marketplace place site receives a fee for the lead. You then complete the process with the lender. Online mortgage brokers offer another twist on the process. Companies like Sindeo provide a concierge service with advisers guiding you through the home loan selection process., in which the broker works closely with you and your lender to complete your loan package. Online lenders streamline the process. Online lenders are becoming more of a force in the industry. In fact quicken loans has become one of the largest mortgage companies in the country. Another large company, rocket mortgage offers lending service and full mortgage or re-financing in 8 minutes. The mortgage lending process is changing radically. Next gen lenders strip away delays in the old system by using algorithms , auto-mated loan decisions and documentation gathering through secure online communications. Non-bank cater to those with less then perfect credit. Big bank lenders are shying away from loans after the crisis. Smaller family owned lenders often face less federal regulations then the larger institutions. Credit unions also play a big role. You have mortgage options every were. It's empowering to know when it comes to financing a home you have options. While the lending process is moving more and more to e-documents the closing process is still within title companies and attorneys. Choosing to go to the mortgage middle man or the direct lender is a personal choice.