Funds are earmarked for talent acquisition and marketing.
Timing of the funding round is perfect, as the mortgage industry is ripe for disruption, Blend CEO Nima Ghamsari explained.
“The multi-trillion dollar mortgage industry has been running on legacy technology for decades. Lenders and borrowers are underserved,” Mr. Ghamsari said.
“We’ve built a flexible product that reduces the data collection burden for borrowers and speeds up processes for lenders while retaining airtight digital compliance.”
Multiply the more than $7,000 it costs to originate a single mortgage by the number of mortgages granted each year and that equals billions of dollars in savings through automation of basic tasks, the company said in a release. Better service can be delivered in less time by leveraging technology.
Silicon Valley heavyweights certainly believe in Blend’s vision. Additional backers include Max Levchin, Hans Morris, Andreessen Horowitz and Peter Thiel.
“This is a technology challenge that lenders are not positioned to solve on their own,” Mr. Thiel said. “Blend’s engineers and data scientists are making the high-stakes mortgage transaction better for lenders and borrowers. They are changing the way the entire industry operates.”
Blend is being used by several top-30 lenders, the company said. One reports 30 percent of mortgage applicants are completing the process on a mobile device, with have of those submitting outside of normal bank hours.
Blend allows borrowers to securely submit pay stubs, tax forms and bank statements directly to the lender. Once digitized, they combine with automated rules and configurable workflows to produce a fully compliant process.
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