Roostify Integrates with LendingTree

Consumer-focused mortgage digitization platform Roostify integrated with online loan marketplace LendingTree today. The integration leverages LendingTree’s aggregation technology to help consumers find the right loan, while Roostify keeps the mortgage origination process online.

Nikul Patel, Chief Strategy Officer, LendingTree cited a “digital gap” in the mortgage industry, explaining that even though most consumers shop for loans online, the mortgage origination process still takes place offline. “Our integration with Roostify brings the industry one step closer to the all-digital vision for a seamless consumer journey,” Patel said.

Consumers browse mortgages on LendingTree and when they select a lender using Roostify they move seamlessly into the application flow. From the lender’s website, Roostify powers authentication using pre-populated fields and the user can apply for a mortgage using Roostify’s fully online process. The integration will be available in the first quarter of this year for all joint LendingTree-Roostify clients.

“Roostify is dedicated to improving the lending experience for both consumers and lenders,” added Rajesh Bhat, CEO of Roostify. “Partnering with LendingTree, whose mission is to help consumers find the best home loan, helps us achieve both those goals, increasing efficiency and lead quality for lenders while offering consumers a faster, stress-free path to apply for and close a competitively priced home loan.”

This move positions Roostify to better compete with mortgagetech company Sindeo, which takes a B2C approach by enabling consumers to shop 40+ lenders and 1,000+ loan programs on its platform.

Roostify presented at FinovateSpring 2016 where the company’s Nathaniel Sokoll-Ward, Head of Product, and Jonathan Kirst, CTO, showed off integrations with TurboTax, Equifax, as well as account aggregation capabilities for asset verification. About a year ago, the company teamed up with Chase to power the bank’s self-service mortgage application process. In October of last year, Roostify launched a Decision Builder tool to offer lenders a set of visual decision-making tools for borrowers. For more on the mortgagetech sector, check out our industry overview.

Founded in 1998, Lending Tree went public on the NASDAQ in 2000. The company was acquired by InterActiveCorp (IAC) in 2003. At FinovateSpring 2015 the company debuted My LendingTree, a personalization platform with a dashboard to view all credit-related accounts. Last spring the company acquired DepositAccounts.com for $33 million.

Finovate Alumni News

On Finovate.com

  • German Challenger Bank N26 Deploys Banking Technology from Mambu.
  • Realty Mogul Launches Second REIT, REIT II.

Around the web

  • Baker Hill NextGen Statement Spreading to bolster commercial lending underwriting for People’s Bank and Trust.
  • Fenergo adds Michele Shepard as Chief Revenue Officer and Greg Watson as Managing Director of Sales and Strategy.
  • LendingTree partners with Benzinga for its Fintech Innovation Challenge.
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  • SmartX (formerly HedgeCoVest) Announces the Addition of BlackRock, Morningstar Investment Management, and Nasdaq Dorsey Wright.

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 Finovate.com

  • StockViews Closes Second Round Equity Funding, Earns FCA Authorization.

Around the web

  • EverSafe picks up $250,000 in capital from JP Morgan as one of eight FinLab startup winners.
  • Affinity Plus FCU ($2 billion in assets) to deploy Fiserv’s Architect platform to power its online and mobile banking services.
  • Trusted Key CEO Prakash Sundaresan looks at changing customer expectations, security challenges, and the shifting regulatory landscape through the lens of FinDEVr London.
  • Payfone wins patent for technology that fights SIM swap fraud.
  • Ghana’s Premium Bank chooses NetGuardians’ anti-fraud solution, FraudGuardian.
  • LendingTree acquires DepositAccounts for undisclosed sum.
  • AutoGravity unveils partnership with Fletcher Jones Auto Group.

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.

LendingTree Launches Student Loan Comparison Tool

LendingTree_homepage_March2017

“When banks compete, you win,” LendingTree is famous for saying. Now the same may be said of student loan refinancing, as well.

LendingTree unveiled its Student Loan Refinance Tool this week. The solution enables students to compare their student loans to see if they can save money by refinancing to a loan with lower rates and better terms. With some basic information about the current loan (balance, monthly payment, and interest rate) as well as the interest rate and loan term of the new loan, student borrowers can determine whether or not there are better loan options for them in a matter of minutes. “It is completely free to use, only takes a few minutes to get results, and can save people a lot of money by letting them optimize their student loans,” wrote LendingTree Content Specialist, Tom Sumrak in an email.

LendingTree_stage_FS15

Pictured: LendingTree’s Gabe Dalporto (CMO and President, Lending) demonstrating My Lending Tree at FinovateSpring 2015.

Students can follow up with LendingTree to take advantage of the average $14,417 the company has saved student borrowers over the life of their loans. In order to secure refinancing, students need a picture of their driver’s license, a paystub, and a picture of their current student loan. Students with bachelor’s, master’s, and doctorate degrees are all eligible for refinancing. Current employment and good credit are a plus.

LendingTree is now competing with newcomers such as SoFi, which launched as a student loan platform in 2011 and expanded to offer mortgages in 2014. Headquartered in Charlotte, North Carolina, LendingTree demonstrated its My Lending Tree personalized borrower’s platform at FinovateSpring 2015. In November, the company acquired credit card comparison and education portal, CompareCards, in a deal valued at $130 million. In September, LendingTree was named a top workplace by The Charlotte Observer, and in June, the firm launched its CRA-Eligibility Tool to make it easier for lenders to comply with the Community Reinvestment Act. With partnerships with more than 350 active lenders including Prosper Marketplace, Lending Club, and Quicken, LendingTree was included in our look at the emerging PropTech and MortgageTech sectors last month.

Finovate Alumni News

On Finovate.com

  • A Look at the Savings Tech Horizon: Crowdfunded Savings with Spiff and InSpirAVE.
  • LendingTree Launches Student Loan Comparison Tool.
  • Check out this week’s FinDEVr APIntelligence.
  • A Look at the Savings Tech Horizon: Advice-Only with Hellowallet and  Wealth Wizards.

Around the web

  • Malauzai Software launches Fingerprint Authentication and Touch ID technology for Android 7.0 this year.
  • VISA to enable electronic business payments for SME clients of B2B electronic invoicing network, Viewpost.
  • Fiserv reports nearly 30 banks and CUs deployed its digital banking technology in 2016, taking the total number of FIs using its online banking solutions to 3,500.
  • PurePoint launch leverages Zenmonics’ channelUNITED.
  • Bitpesa partners with Bitbond to financially assist SMEs.

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.

Why PropTech and MortgageTech Are the Future of Fintech

If this is the first time you’ve heard the term proptech, it won’t be the last. Proptech (also known as real estate tech or REtech) and its subset mortgagetech have been around since 2014. Here’s why 2017 is poised to place proptech among the ranks of wealthtech, insurtech, regtech.

This year has already been favorable to mortgagetech and proptech companies. SoFi, for example, is about to close a massive, $500 million round, its competitor LendingHome topped $1 billion in mortgage loan originations last year, and RealtyShares has seen over $300 million raised on its platform. According to CB Insights, since 2012 the real estate technology sector has closed 817 deals worth $6.4 billion. Of that amount, $2.6 billion closed in 2016 alone, which represents a 40% increase from that sector’s funding in 2015.

In the U.S., there are a handful of reasons 2017 will be favorable to real estate. Interest rates are projected to rise for the second time, millennials are starting to buy their first homes, and investors are looking to diversify out of the volatile stock market. On top of all of this, regulations are slated to loosen under the Trump administration, and changing in regulation brings opportunities for innovation.

Players

The broader category of proptech can be broken down into four basic segments.

1- Mortgagetech
These are mostly B2B companies specifically focused on facilitating part of all of the mortgage application process. They do not lend or service the loan.

2- Digital mortgage lending companies
These online lenders facilitate the mortgage application process and service the loan.

3- Real estate investment tech
Companies in this category are focused on the investment aspect of commercial and residential real estate.

4- Pure property plays
These don’t have a fintech angle but play a role in the broader proptech industry. Since this category is out of scope for this blog, this list only encompasses a fraction of companies in this category. Check out CB Insights’ coverage of commercial real estate technology for more.

What’s ahead in 2017

  • Expect to see more mortgagetech-bank partnerships along the lines of Roostify’s recent deal with JP Morgan Chase. As banks try to gain a competitive edge for market share, more established banks will need to leverage mortgagetech offerings.
  • We’ll see more niche alt-lending solutions such as SoFi that facilitate the application process and save borrowers on closing costs.
  • Expect to see more players offering real estate investment technology, coupled with some consolidation in real estate crowdfunding companies.
  • Outside of fintech, we’ll see more platforms aimed at cutting out the middle person, the realtor; and more business models such as Knock and GoldenKey that make the selling process easier.

You don’t have to take my word for it

We posed the question, How do you see proptech/ mortgagetech growing in 2017? to these Finovate alums working in the space. Here’s how they responded:

BhatRajesh Bhat, CEO and cofounder of Roostify:

“We expect to see further widescale adoption of digital mortgage solutions – to the point where one should expect it to be table stakes in 2018. We should also expect to see more players emerge in the space as investors see larger market adoption and validation.”

 

Screen Shot 2017-02-23 at 9.52.53 AMLinda Schicktanz, Chief Advisor of CK Mack*:

“If there is one area ripe for fintech innovation, it’s real estate investing. Why put 30% down just to gain massive management headaches when you can now invest in rental cashflow online with very similar returns? Fintech and Real Estate are like peanut butter and jelly, they just go together!”

Screen Shot 2017-02-23 at 8.30.31 AMNima Ghamsari, cofounder and CEO at Blend:

“There is going to be an explosion in the use of data driving the mortgage process in 2017. Both Freddie Mac and Fannie Mae have announced their data initiatives toward the end of 2016, and lenders are starting to push consumer financial data aggregation into the core components of their customer experiences. This ties in nicely to the industry-wide push forward to a more digital, end-to-end process that started in 2016.”

Screen Shot 2017-02-24 at 4.07.54 PMJilliene Helman, CEO at RealtyMogul

“The impact of digital technology on the real estate industry and mortgage technology is still in its infancy, but I see both less experienced and more sophisticated investors, alike, moving toward a process that takes place entirely online. With over $250 million of capital invested and 100,000 registered investors on the platform, RealtyMogul.com is a testament to this change. The more that technology can offer real estate borrowers and lenders transparency, as well as the efficiency of process and convenience, the faster both sides will adapt.”


*Full disclosure: I’m related to Linda Schicktanz. Yup– she’s my mom.

Finovate Alumni News

On Finovate.com

  • “Finovate Debuts: Test Driving iBank Marketing’s Wallet+””
  • “Fintech Trending: Making Fintech Great Again?”

Around the web

  • LendingTree acquires credit card comparison and education provider, CompareCards.
  • Fiserv adds new UX and UI to its Unified Wealth Platform.
  • Featurespace earns ranking in Deloitte 2016 U.K. Technology Fast 50.
  • Forrester Research names Vantiv a leader in its report on global commerce payment providers.
  • The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) grant Turnkey Lender a fintech award in the SME category.
  • CustomerXPs ranked 31 on the Deloitte Technology Fast 50 India 2016.
  • LiftForward lands $100 million in debt capital.

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 Finovate.com

  • “P2P Lender Zopa to Launch Challenger Bank”
  • “Finovate/FinDEVr Alums Featured Among Monitise FINkit Platform Partners”
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Around the web

  • Co-founder of Markit, Rony Grushka, joins Algomi’s board of directors.
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  • Juvo teams up with Cable & Wireless to provide mobile credit services in the Caribbean.
  • Mastercard partners with Ratnakar Bank to launch Masterpass QR in India.
  • Thomson Reuters unveils its Thomson Reuters Pricing Service Evaluation Score (TRPS) to support pricing transparency.
  • LendingTree acquires credit card comparison and education provider, CompareCards.
  • Pirean wins security innovation of the year at the U.K.’s 2016 IT Industry Awards.
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  • NatWest deploys BioCatch behavioral biometrics technology.
  • Boku provides direct carrier billing in Japan for Spotify.

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 Finovate.com

  • Envestnet | Yodlee, eMoney Advisor, and Betterment Earn Recognition at 2016 Wealth Management Awards

Around the web

  • Qapital featured in a list of the “5 best productivity apps for freelancers.”
  • Let’s Talk Payments profiles Finovate Best of Show winner BanQu.
  • LendingTree named a top workplace by The Charlotte Observer.
  • Actiance Launches Safe Landing Program for Autonomy Customers.
  • Xero Announces Improved Integration with PayPal.

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.

LendingTree Launches CRA-Eligibility Tool

Screen Shot 2016-06-27 at 2.55.38 PM

Online loan marketplace LendingTree launched a new tool to help lenders comply with Community Reinvestment Act (CRA) regulations, which were enacted in 1977 to encourage banks to rebuild communities.

Banks subject to CRA evaluations can use the new tool to identify low- to moderate-income borrowers, extending credit to typically underserved individuals. Doug Lebda, founder and CEO of LendingTree, said the new capability “offers more financing opportunities to borrowers who may otherwise find difficulty in securing loans due to income requirements.”

At FinovateSpring 2015 North Carolina-based LendingTree debuted My LendingTree, an online dashboard where users view all credit-related accounts. LendingTree alerts users to money-saving and other opportunities through its recommendation engine.

Earlier this month, LendingTree partnered with the Innovative Lending Platform Association in building a small business lending disclosure model, SMART Box. The model not only offers transparency to small business borrowers, it also provides a concise way for lenders to explain the loan terms.