Roostify Lands $25 Million to Disrupt the Mortgage Industry

Mortgagetech startup Roostify raised $25 million to further its quest to improve the mortgage industry today. The Series B round comes from new investors Cota Capital, Point72 Ventures, and Santander Innoventures, and existing investors JPMorgan Chase, Colchis Capital, and a subsidiary of USAA.

The funding brings Roostify’s total raised to $33 million. The California-based company will use the funds to deepen its presence in the enterprise space, implement product enhancements, and expand into new markets.

Rajesh Bhat, co-founder and CEO of Roostify said that when the company launched four years ago, having a digital strategy was simply an ambition for lenders. Today, digitizing the mortgage process has evolved into a business imperative. “Lenders now realize the value of providing consumers with a transparent, mobile, and seamless experience to obtain a loan without needless stress-inducing delays and red tape. We have developed a solution that allows lenders of all sizes to give their teams a tool to digitally engage with clients and to bring the loan origination experience to the consumer,” Bhat added.

Originally launched as a way to create efficiencies by digitizing the traditionally paper-bound processes, Roostify has evolved into an enterprise scale platform aimed to help U.S. lenders accelerate, simplify, and reduce costs associated with the mortgage origination process. Leveraging its cloud-based API solution, lenders help clients with the entire mortgage process– from searching for the loan to close– via a fully-digital, branded experience. Bobby Yazdani, Cota Capital’s Managing Partner, said his team was “immensely impressed with what Roostify has accomplished in the last four years,” He added,“Roostify has evolved not only their own offering and product focus, but the market as a whole, helping the lending industry transform itself for the digital age.”

Roostify presented at FinovateSpring 2016 where the company demoed account aggregation capabilities for asset verification, as well as integrations with TurboTax and Equifax. Since then, the company has teamed up with Chase to power the bank’s self-service mortgage application process. Last month, Roostify launched an integration with LendingTree that blends LendingTree’s aggregation technology with Roostify’s mortgage digitization. For more on the mortgagetech sector, check out our industry overview.

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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.

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Roostify Launches Decision Builder

 

Decision Builder, the latest solution from mortgage tech innovator Roostify, will give lenders the ability to provide loan applications with a clear, easy-to-understand view of all the borrower’s loan options – based on the lender’s actual product and pricing system.

“Consumers often approach a home loan with a lot of anxiety, in part because traditionally very little information has been available to them,” Vice President of Products for Roostify, Sandeep Aji said. Not knowing things like how much the monthly mortgage payment will be or the exact amount needed to close “until late in the process,” are an unnecessary source of stress for prospective mortgage borrowers, Aji explained. “With Decision Builder, consumers can get an accurate idea of what to expect before they even fill out an application,” he said.

Readily integrated into the lender’s current website, Decision Builder collects some basic information such as desired loan amount, anticipated downpayment and ZIP code of the house via a set of dropdown questions. The tool then provides a set of loan options that let the prospective borrower see which products and rates they qualify for. Once the consumer makes their choice, a single click allows them to continue the process with their selected loan product. Aji added that improving the application process by providing more information sooner is a benefit to lenders as well as homebuyers. “Offering this information to consumers trying to education themselves allows lenders to establish a trust relationship early on with prospective clients,” he said, “increasing the likelihood they will apply with that lender.” Decision Builder will be demonstrated live next week at the MBA Annual Convention.

Founded in 2014 and headquartered in San Francisco, California, Roostify demonstrated its platform at FinovateSpring 2016. Last month, the company announced partnerships with mortgage transaction services provider ServiceLink and digital insurance firm, Matic Insurance Services. In August, the company celebrated a milestone in the number of external developers working on its platform. The previous month, Roostify announced that it had helped housing lender First Cal reduce its loan process to 15 days – 66% lower than the national average of 43 days.

Named to the Forbes Cloud 100 and CB Insights Fintech 250 earlier this year, the company added top executive talent in 2017, bringing on Frank Gelbart as Chief Revenue Officer and Sandeep Aji as Vice President of Products. We profiled Roostify as part of our look at proptech and mortgagetech back in February.

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Roostify Celebrates Growth, Role of External Developers on its Platform

How many fintechs can boast of having more external developers working on its platform than in-house talent?

That’s the happy situation Roostify finds itself in. The automated lending technology innovator announced this week that the number of external developers working on the online mortgage platform now exceeds the number of Roostify’s in-house engineers. For newly-hired VP of Products, Sandeep Aji, this milestone is a major validation of the company’s ability to successfully promote the functionality of its API. “Our clients are finding value in the flexibility and extensibility that Roostify offers versus a static, off-the-shelf software program,” Aji said.

Pictured: Roostify co-founder and Head of Product Nathaniel Sokoll-Ward demonstrating the company’s platform at FinovateSpring 2016.

The ability to build customized workflows is at the heart of what is attracting both large enterprise customers as well as “tech-savvy smaller lenders” to Roostify’s platform. The Roostify API enables users to design their own processes to run within the platform and to easily integrate with their own CIS, CRM, LOS, and Access Control systems. This allows a wider number of potential users of the technology, who don’t have to wait for a specific integration for their system. “The API allows them to build that integration themselves and create the workflow that’s right for their business, rather than forcing them to adopt a different program in order to use Roostify,” Aji explained.

Founded in January 2014 and based in San Francisco, California, Roostify demonstrated its SaaS-based, end-to-end lending platform at FinovateSpring 2016. Last month, the company was named to the Forbes 2017 Cloud 100 list and was credited by First California Mortgage (First Cal) for helping them reduce average loan timeframes to 15 days (national average is 43 days). Also a member of CB Insights Fintech 250, Roostify added former Appfluent Technology CEO Frank Gelbart as Chief Revenue Officer in April, and announced a deal to power Chase Bank’s self-serve mortgage platform in February. The company has raised $8 million in funding, and includes USAA and Colchis Capital Management among its investors. Rajesh Bhat is co-founder and CEO.