Retail mortgage lender Guaranteed Rate and national real estate agent Compass announced Tuesday that they had entered into an agreement to set up a new mortgage company.
The new company, OriginPoint, will integrate Guaranteed Rate's digital mortgage capabilities into Compass' cloud-based software so that Compass customers – as well as other brokers – can connect with loan officers. The combined company aims to streamline the home buying and mortgage lending process. Entering the credit market is a new venture for New York-based Compass, which traded as a public company earlier this year.
"OriginPoint is bringing two digital-first companies together to offer a mortgage product that provides brokers and their customers with a seamless and transparent experience, ultimately leading to an easier real estate transaction for everyone," said Robert Reffkin, CEO, Chairman and Founder.
Chicago-based GuaranteedRate and Compass are both active in the Jumbo Home marketplace, which has seen increased loan volumes in recent months.
“With soaring interest rates, limited housing supply and the slowdown in refis, now could not be a more perfect time to hire the best of the best loan officers and sales managers across the country,” said Victor Ciardelli, Guaranteed Rate Founder and CEO. Guaranteed rate companies financed more than $ 73 billion in loans last year and closed more than $ 60 billion in 2021 to date.
OriginPoint will be available in more than 50 metropolitan areas across the country where both Compass and Guaranteed Plans work. The service is scheduled to begin this year in selected markets with a separate lending team. Borrowers can use OriginPoint regardless of the brokerage company handling their home sales. Lenders joining OriginPoint can take advantage of the tools, products, and pricing structures developed by Guaranteed Rate.
The deal is Guaranteed Rate's newest big deal this year. In January, the lender bought Stearns Holdings, opening the door to the guaranteed rate to get into the broker / wholesale business.
It's also been a busy year for Compass (COMP), co-founded by Reffkin in 2012. In the first quarter, the company posted $ 1.1 billion in revenue – an 80% year-over-year increase – but also recorded a net loss of $ 212.4 million, which was a one-time charge of $ 149 million. Dollars related to the IPO. Compass began trading on the New York Stock Exchange on April 1, opening above its asking price of $ 21.25. However, in the months that followed, the stock's value fell more than 30%, trading at $ 13.65 on July 12th.