Mortgagetech Magnates Ellie Mae and Blend Team Up

Mortgagetech company Blend and mortgage finance platform provider Ellie Mae have joined forces this week, as reported by American Banker. Through the partnership, Blend is leveraging Ellie Mae’s electronic disclosure delivery, a part of the company’s Encompass mortgage solution.

The integration will augment Blend’s self-service mortgage platform by offering a more seamless user experience. Lenders who use Ellie Mae’s Encompass loan origination solution can create and deliver electronic disclosures through Ellie Mae’s document preparation software. The electronic delivery will not only facilitate the e-signature process, it will also enhance compliance by leaving an audit trail.

Ellie Mae’s Encompass mortgage solution helps lenders originate more loans with lower origination costs and a faster time to close. Using the full Encompass solution, Ellie Mae helps lenders save an average of $967 per loan in operational improvements, such as saving time and postage from having to deliver disclosures via snail mail. Blend estimates its integration of Ellie Mae’s electronic disclosure delivery will save an average of $15 per loan.

Earlier this spring, Pacific Union Financial partnered with Ellie Mae to leverage the full Encompass mortgage management solution, enabling customers of both Pacific Union and Ellie Mae to deliver loan data and documents from Encompass to Pacific Union more efficiently and in real time.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. During the demo, presenter Jonas Moe, SVP of Market Strategy, demonstrated the company’s API by showing off an Alexa integration with Encompass Plus– asking questions such as, “What loans have rate lock expirations this week?” and “Search for a better rate.” Ellie Mae is headquartered in California. Jonathan Corr is president and CEO.

Blend demoed its data-driven mortgage at FinovateSpring 2016. The company was recently recognized for its achievements in the mortgage industry at the MBA Insights Tech All-Star Awards and was also featured on the Forbes Fintech 50 list. Last summer, Blend pulled in a $100 Series D investment from Greylock, Emergence Capital, Lightspeed Ventures, Nyca Partners, and 8VC, bringing its total capital to more than $160 million.

Finovate Alumni News

On Finovate.com

  • BondIT Raises $4 Million in New Funding, Adding to Series B.
  • Mortgagetech Magnates Ellie Mae and Blend Team Up.

Around the web

  • Merchant Bank of Sri Lanka & Finance to deploy core account processing platform and front-end teller systems from Fiserv.
  • PayPal expands its relationship with Google Pay, enabling PayPal as a payment option across the Google ecosystem.
  • Revolut announces plans to open office in Edinburgh, Scotland later this year.
  • Prosper increases borrower lending cap to $40,000, matching Lending Club’s cap.
  • OurCrowd signs MOU with Intesa Sanpaolo to promote access to capital.
  • IDG Connect interviews CurrencyCloud CTO Ed Addario.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Blend, Roostify Earn Honors at MBA Insights 2018 Tech All-Star Awards

The Mortgage Bankers Association’s annual Insights 2018 Tech-All Stars have been named and this year a pair of Finovate alums  – Blend and Roostify – are among those recognized for their achievements in mortgagetech.

“Technology is driving remarkable innovations and efficiencies in real estate finance,” MBA Vice Chairman Brian Stoffers said. “MBA is pleased to recognize the men and women making significant technological contributions to the mortgage industry.”

Also earning recognition from the MBA at its Technology Solutions Conference & Expo earlier this week were Land Gorilla, Docutech, Notarize, and ReverseVision. The six winners were chosen from a nomination pool of 40 mortgage tech companies, the largest number of nominations since the awards were founded in 2002.

“Our Technology All-Stars are designing tools that disrupt the industry, but also make us smarter,” Stoffers added. “They are the ones providing us both faster and safer mortgage business tools to advance our industry. We call the Tech-All Stars the unsung heroes of the industry because much of what they do takes place behind the scenes – but we could not survive or move forward without them.”

The All-Stars honors were a first for both Finovate alums. Earlier this year, Roostify made fintech headlines when it announced picking up a $25 million investment. The Series B round featured participation from new investors Cota Capital, Point72 Ventures, and Santander Innoventures, as well as existing investors JP Morgan Chase, Colchis Capital, and a subsidiary of USAA, and boosted Roostify’s total capital to $33 million. The company said the funds would be used to expand its presence in the enterprise, pursue product enhancements, and seek opportunities in new markets.

Roostify demonstrated its technology at FinovateSpring 2016, showing how its SaaS solution enables lenders to offer a consumer-focused, mobile-friendly experience for borrowers from application to close. The company began the year with news that it was integrating with online loan marketplace and fellow Finovate alum Lending Tree, and has since added Adnan Habib as Vice President of Engineering and Mark McLaughlin as Vice President for Business Development.

Roostify was founded in 2014 and is headquartered in San Francisco, California. Rajesh Bhat is CEO and co-founder.

Newly named to Forbes Fintech 50 list, mortgagetech innovator Blend was founded in 2012 and is based in San Francisco. The company, which demonstrated its Data-Driven Mortgage solution at FinovateSpring 2016, leverages intuitive design and data-powered intelligence to help lenders originate loans more efficiently and improve customer engagement. By making it easier for home buyers to provide lenders with the right, accurate information and streamlining the follow-up process for lenders, Blend’s platform enables application decisioning within days rather than weeks.

Last fall, GoBankingRates featured Blend in its look at 10 Startups to Watch in 2018 roster, and Forbes profiled the company in a feature titled “Blend Wants to Bring the $2 Trillion Mortgage Market to the Modern Era.” Blend has raised more than $160 million in funding, and has an estimated valuation of $500 million. Nima Ghamsari is CEO and co-founder.

Finovate Alumni News

On Finovate.com

  • Blend, Roostify Earn Honors at MBA Insights 2018 Tech All-Star Awards.
  • Qapital’s Latest $30 Million to Fuel New Roboadvisory Tools.

Around the web

  • FICO boosts financial crime protection with new suite of solutions.
  • Ping Identity achieves ISO 27001 Certification.
  • Luxoft teams with Softbank Robotics America to bring its humanoid robot Pepper to life.
  • MicroStrategy releases 3 new gateways to Microsoft Azure.
  • Woleet, a blockchain-based timestamp and signature app, is now available on Ledger Nano S.
  • Grubhub partners with PayPal’s Venmo on bill-splitting feature.
  • Avoka sees positive trends for North American banks in its 2018 State of Digital Sales in Banking Report.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Forbes Names 17 Finovate Alums on the Forbes Fintech 50

Forbes has released the third* Fintech 50 list, which this year features 17 Finovate alums, many of which have made the list for the third time. The Fintech 50 list highlights the top private fintechs that have operations, customers or impact in the U.S. The list excludes public companies and divisions of public companies.

Here are the alums honored in this year’s compilation:

Ayasdi

Among 22 newcomers to this year’s list.

Betterment

The company’s third time making the list.

Blend

Among 22 newcomers to this year’s list.

Blockchain

Among 22 newcomers to this year’s list.

Chain

The company’s third time making the list.

Coinbase

The company’s second time making the list.

Credit Karma

The company’s third time making the list.

Feedzai

Among 22 newcomers to this year’s list.

Gusto (formerly ZenPayroll)

The company’s second time making the list.

Kabbage

The company’s second time making the list.

Kensho

The company’s third time making the list.

Plaid

The company’s third time making the list.

Qapital

The company’s second time making the list.

Ripple

The company’s third time making the list.

Symbiont

Among 22 newcomers to this year’s list.

Symphony

The company’s second time making the list.

TransferWise

The company’s third time making the list.

In 2016, the list contained 20 Finovate alums, including Betterment, Chain, Coinbase, Credit Karma, Gusto, Kabbage, Kensho, Klarna, Motif, Personal Capital, Plaid, Qapital, Quantopian, Ripple, Signifyd, SoFi, Symphony, TransferWise, TrueAccord, and Xignite.

The list from three years back also contained 20 Finovate alums. Algomi, Betterment, Braintree, Chain, Credit Karma, HelloWallet, Kensho, LearnVest, Motif, Personal Capital, Plaid, Prosper, Quantopian, Ripple, Simple, TransferWise, TrueAccord, Vouch, Wealthfront, and Xignite made the list.


*Forbes skipped this compilation for 2017.

Finovate Alumni News

On Finovate.com

  • Coinbase Custody Helps Institutional Investors Securely Store Digital Assets
  • Kabbage Expands Small Business Funding with $200 Million Credit Facility.

Around the web

  • Overbond offers U.S. corporate issuers and institutional investors real-time access to its platform.
  • PayPal and Synchrony Financial expand strategic consumer credit relationship.
  • U.K.-based Featurespace to open office in Atlanta in November.
  • WealthForge Debuts Its First Regulation A Offering with New Investor Workflow
  • GoBankingRates features Blend, Unison, and Ellevest in its 10 Startups to Watch in 2018 list.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On the web

  • Braintree Powers RFID Payments for Eventbrite Attendees.

Around the web

  • Accion features Aneesh Varma of Aire on Medium.
  • Forbes: Blend Wants To Bring The $2 Trillion Mortgage Market To The Modern Era.
  • Seylan Bank selects Finastra (formerly Misys) for trade finance and corporate banking.
  • HSBC launches online data tool in collaboration with Xero, Sage and Intuit
  • TSYS President, COO Pamela A. Joseph resigns.
  • Actiance Announces Compliant Capture and Archiving Support for Microsoft Teams.
  • Blackhawk Network’s Hawk Incentives Launches Wallet-Enabled Prepaid Card for Promotions and Incentives.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Mortgagetech Innovator Blend Picks Up $100 Million Investment

Earlier this year, Finovate Senior Research Analyst Julie Muhn predicted that the continued rise of mortgagetech would be one of the biggest fintech success stories of 2017.

Today, with news of a $100 million investment in Blend, a startup that specializes in making the mortgage process easier for bother lenders and borrowers, it looks like her prediction is right on track.

“We’ve found a great partner in Greylock,” Blend CEO and founder Nima Ghamsari wrote at the company blog this week, “not only because they’re one of the top venture capital firms in Silicon Valley, but also because of their history of success in helping take technology companies to the next level.” Joining Greylock in Blend’s Series D round were Emergence Capital, Lightspeed Ventures, Nyca Partners, and 8VC. The funding brings the company’s total capital to more than $160 million and gives Blend an estimated valuation of $500 million.

 

Blend plans to use the additional funding to grow its staff, expand beyond the United States, and explore opportunities to bring its technology to other lending products. “The opportunity for our technology in the $40 trillion consumer lending market is huge, but the industry won’t change overnight,” Ghamsari wrote. “To realize our goals, we need to continue scaling and bringing together the best talent, partners, and backers to get us to the next level.”

Blend’s dramatic funding announcement comes with news that the company has partnered with Wells Fargo and U.S. Bancorp. Both banks will use Blend’s technology to speed the mortgage application process and better compete with rivals like Quicken Loans. U.S. Bancorp believes Blend will enable them to reduce the mortgage application process by as many as five days and that the timeline will eventually be “sliced in half.” Wells Fargo, which began working with Blend “late last year,” expects to introduce its new, Blend-supported, mortgage product nationwide in 2018.

Founded in 2012 and based in San Francisco, California, Blend demonstrated its Data-Driven Mortgage  solution at FinovateSpring 2016. The company has tripled its user base since January 2016 and processed more than $30 billion in mortgage applications this year alone. Last month, the company launched its native mobile app, making it easier for loan officers to manage requests and applications from their mobile devices. A member of CB Insights’ Fintech 250 list, Blend was featured in our look at tech trends driving mortgagetech earlier this year, “Digitization, Data, and Automation.” For more about the company, also check out our interview with Blend CTO Eugene Marinelli.

Finovate Alumni News

On Finovate.com

  • Mortgagetech Innovator Blend Picks Up $100 Million Investment.
  • Finovate Alums Among Top Investment Targets for Top European Banks.

Around the web

  • iSignthis inks deal to begin contracting merchants to ISXPay Australia for card acquiring.
  • Stripe to offer instant payments solution from Klarna on its interface.
  • ABA Banking Journal features receipt management solution provider, Shoeboxed.
  • Xendpay launches Pay Day Initiative with no transfer fees or payment transfer limits.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Blend Launches Native Mobile App

Blend, a startup that helps lenders make better mortgage lending decisions, announced a native mobile app last week. The San Francisco-based company’s launch of Blend Mobile aims empower loan officers to manage borrower requests and applications on their mobile device in order to facilitate communication between the two parties.

Founded in 2012, Blend has 30 clients and has raised $60 million. The company’s lender-facing system offers a digital, paperless mortgage application process. The customizable interface is designed to reduce friction in borrower interactions and aims to help loan originators close up to seven to ten days faster.

With Blend’s new native app, lenders can cater to borrowers by enabling them to complete a mortgage application when and where they prefer, with the ability to switch among channels. The app also leverages push notifications and alerts to facilitate communication between the two parties. For example, the app notifies lenders if they have a period of inactivity greater than 48 hours in order to decrease the time to close. The new app is available to all current and new Blend clients.

Blend demoed its data-driven mortgage at FinovateSpring 2016. The company was recently named to CB Insights’ Fintech 2015 list. Earlier this year, we highlighted Blend’s role in growing the mortgagetech scene and interviewed CEO Nima Ghamsari in a feature on Blend last year.