Why Start a Mortgage Company?
Folks have asked us here at Morty, “Why start a mortgage company?” And our answer usually begins, “Good question, glad you asked!”
Plain and simple: the mortgage industry is broken. It’s making it more difficult for many Americans to purchase homes, and deterring many others from even trying.
To start, the mortgage process is terribly painful and outdated. Leading mortgage banks are over 100 years old. Non-banks and other big “online” lenders are decades old. Legacy technology, new regulations, and stale business models have stifled innovation. Today a mortgage loan takes, on average, 47 days, hundreds of documents, and thousands of dollars to close. And even worse, we hear horror stories from friends and family about losing their dream house to a mortgage that falls through for no good reason. But it simply doesn’t have to be this way in 2016.
What’s Wrong with Mortgages Today?
Second, the mortgage process is stacked against the homebuyer. It’s incredibly difficult to learn, shop, and compare offers– like you would when buying a flight on Kayak or a room on AirBnB. And as a result, most homebuyers pay thousands of dollars more in monthly payments, fees, and closing costs than they should have to. The process also lacks transparency from start to finish. Lenders compete aggressively to get you in the door. But then you’re trapped inside with no lights and no keys. Modern online services can do more to educate and empower the consumer.
Lastly, society is changing, and so too will mortgage lending. More Americans have student loan debts. Fewer have savings in the bank. New online lenders like SoFi recognize this and make homeownership possible for the growing number of Americans who get turned away by banks and other traditional lenders. More companies offering these types of alternative loans are emerging. As the market diversifies, homebuyers will need help navigating through a broader array of lenders and loan products available.
Our founders are mortgage experts and software engineers who believe the industry can do better. We’re excited to introduce Morty, an online mortgage platform built for the next generation of homebuyers. Our mission is to help homebuyers find the right mortgage from the right lender at the best price. We couldn’t be more excited to revolutionize this industry. There are other startups tackling this enormous problem and we applaud their efforts. Together we can all make a difference.