Approved
approved the new way to originate home loans
7/05/2016
The Approved Team Advisory Board Mike Koh 20 year serial entrepreneur Founder/CEO Koh Investments Founder/CEO Fypio (now OpenHouse) Founder/Owner MikesBAapartments.com
Andy Taylor, Co-Founder & CEO Director of Product, Redfin (6yrs)
Built and managed the 20 person product team across SF and Seattle. Product and UX expert, with 17+ years of PM / Eng experience.
Navtej Sadhal, Co-Founder & CTO Dev Platform Manager, Redfin (8yrs)
Responsible for major platforms and architectural infrastructure, including latest React.js framework, mobile web, and apps.
Combined 14 years of working deeply with buyers, sellers and agents.
confidential
Dan Kimerling Dir. API Banking SVB Co-Founder Standard Treasury Giftly, Microsoft, TechCrunch, YCombinator Bill Lyons Co-Founder/CEO Revestor CEO Griffin Funding CEO LEI Financial Greg Fischer Partnerships at Realtor.com & Doorsteps Real Estate broker for 10 years / 3 states
approved
approved is building the framework for on-demand mortgages. We’re building out the core infrastructure that lenders need to compete in the lending world of tomorrow. We’re bringing the user experience into the modern times. approved
Problem: Chasing Down Supporting Docs Now: Manual Labor Start
Week 1
Identity Verification
Credit Check
Employment
30 seconds
Start
Checking / Savings
401K / Investments Average Expenses
60 seconds
Identity Verification
Credit Check
Employment
{
Checking / Savings
401K / Investments Average Expenses
Week 2
Approved: Modern APIs
financial-services APIs
online tax returns
identity verification APIs
e-signatures
Loan Prospector / Desktop Underwriter Automated Underwriting APIs
online credit checks
employment records
fraud detection
Approved makes it easier for Loan Officers to close more loans. confidential
approved
Problem: Loan Apps Length: Simply digitizing the 1003 form is not enough - it’s long and unwieldy. Office Hours: How are loan officers going to walk a prospect through the form when it comes in at 2am? Errors: Transcription errors common. Forms are often incomplete.
Approved reduces loan app friction for borrowers, reducing errors 24/7. confidential
approved
Problem: Fall-Off Speed: ~70% of borrowers go with the first lender who approves / locks them. Qualification: Leads that come in are unqualified, but being called by multiple, competing lenders. Houdini: Lead will literally disappear midprocess.
Approved gets a borrower to lock faster, converting at 20x. confidential
approved
A Redefined Origination Experience 1
2
3 approved
4:21PM
iPad
4:21PM
iPad
4
100%
hello, Andy ▾
pre-approvals
dashboard
Pre-Approval Letter for Andy Taylor approved Generated 1/22/2016, 12:32pm
100%
dashboard share
download
hello, Andy ▾
pre-approvals
pre-approval
get started
Congratulations, you have been pre-approved for:
You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
3 Get pre-approved.
$750,000
ZIP
down payment
92104
$
loan type
150,000
30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit. January 22,3.75% 2016 APR, 1.025% prop tax, 0.25% insurance, single family, owner-occupied. Loan Assumptions: Connect Accounts
Get Credit Score
Get Pre-Approved
Subject to the conditions of this letter, Benchmark Mortgage has pre-approved Joseph Smith and Suzanne Smith for a home loan.
Generate Letter
financial overview generated: 1/12/16
income
savings
expenses
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
We have verified the borrowers’ income, expenses, and savings, pulled credit, and pre-approval letters been given a notice of pre-approval from Fannie Mae’s Desktop Underwriter
?
underwriting system.
approved
2612 Bancroft Street
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
approved
?
show accounts ▸
share
delete
expires: in 4 days $694,000 This was generated bydown Approved oncreated: behalf of1/22/16 Benchmark Mortgage. San Diego, CApre-approval 92104 with 20% If you have any questions, don’t hesitate to call at 1 (800) 123-4567, or email usview at [email protected].
approved
share
delete
share
delete
1585 Dale Street
no street specified
$750,000
San Diego, CA 92104
with 20% down
expired letters credit score
723
view
show expired ▸
3 expired letters
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
fair 620-659
expires: in 2 hours created: 1/22/16
This pre‐approval is issued based on your current credit history, income, assets and debt assuming that there are no changes in your financial situation. To complete this process, additional information will be required, including but not limited to a satisfactory property appraisal and appropriate evidence of title for the property being purchased. The availability of our mortgage products are subject to change. This pre‐approval should not be considered a commitment to lend until all lender conditions have been met. This letter expires: February 22, 2016.
view
730
poor < 619
expires: in 10 days created: 1/22/16
view
Connect Accounts
approved
$752,000
Income, Savings, Expenses (verified 1/22/16) San Diego, CA 92104 with 25% down Credit score and history (pages 6-10)
?
Fannie Mae Desktop Underwriter Pre-Approval (pages 2-5)
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
pulled: 1/13/16 by Credit Technologies
New Pre-Approval
Address: 2612 Bancroft Street, San Diego, CA Purchase Price: $750,000 Loan Amount: $600,000 (20% down)
view
good 660-719
excellent 720+
pre-approval pre-approval Approved estimates you can afford a house up to:
Congratulations, you have been pre-approved for:
$750,000
$750,000 ZIP
92104
down payment
$
150,000
loan type 30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit.
Dashboard invite to approved sent from lender CRM or loan officer directly.
confidential
Lightweight 1003, digital needs list, & automatic doc gathering and instant asset verification.
About
Jobs
© 2016 Approved
Terms of Use
Privacy Policy
approved creates digital loan file, uses DU findings to generate loan conditions.
Verified docs and loan application are securely stored and shared with lender CRM, LOS.
approved
On-Demand Analysis 4:21PM
iPad
Automatic: Generate and analyze supporting docs; Fannie / Freddie automated underwriting analysis. Income / Reserves: auto-import recurring income, and take stock of savings. Analysis: analyze average monthly spending. Instantly calculate Debt / Income. All Electronic: create an electronic 1003 loan application paired with docs. confidential
approved
100%
hello, Andy ▾
pre-approvals
dashboard
get started You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
Connect Accounts
3 Get pre-approved.
Get Credit Score
Get Pre-Approved
financial overview generated: 1/12/16
income
savings
expenses
view
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
?
?
?
show accounts ▸
Connect Accounts
credit score pulled: 1/13/16 by Credit Technologies
view
730
723
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
poor < 619
fair 620-659
good 660-719
approved excellent 720+
Automated Findings 4:21PM
iPad
Minutes, Not Weeks: on-demand Fannie / Freddie certified, pre-approval findings. Generate needs list 24/7. Verified: financial data directly from the bank makes underwriting much easier.
Pre-Approval Letter for Andy Taylor approved Generated 1/22/2016, 12:32pm
100%
dashboard share
download
hello, Andy ▾
pre-approvals
pre-approval Congratulations, you have been pre-approved for:
$750,000
ZIP
down payment
92104
$
loan type
150,000
30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit. January 22,3.75% 2016 APR, 1.025% prop tax, 0.25% insurance, single family, owner-occupied. Loan Assumptions: Subject to the conditions of this letter, Benchmark Mortgage has pre-approved Joseph Smith and Suzanne Smith for a home loan.
Generate Letter
New Pre-Approval
Address: 2612 Bancroft Street, San Diego, CA Purchase Price: $750,000 Loan Amount: $600,000 (20% down)
We have verified the borrowers’ income, expenses, and savings, pulled credit, and pre-approval letters been given a notice of pre-approval from Fannie Mae’s Desktop Underwriter underwriting system.
approved
Regulation: meets Fannie Mae 1006 asset verification requirements & DoddFrank “Ability to Repay” rules. Integrated: Integrated into existing toolchains for automated loan apps 24/7. confidential
2612 Bancroft Street
$752,000
Income, Savings, Expenses (verified 1/22/16) San Diego, CA 92104 with 25% down Credit score and history (pages 6-10)
expires: in 10 days created: 1/22/16
view
share
delete
expires: in 4 days $694,000 This pre-approval was generated by Approved on behalf of1/22/16 Benchmark Mortgage. created: San Diego, CA 92104 with 20% down If you have any questions, don’t hesitate to call at 1 (800) 123-4567, or email usview at [email protected].
share
delete
share
delete
Fannie Mae Desktop Underwriter Pre-Approval (pages 2-5) approved
approved
1585 Dale Street
no street specified
$750,000
San Diego, CA 92104
with 20% down
expired letters
expires: in 2 hours created: 1/22/16
view
This pre‐approval is issued based on your current credit history, income, assets and debt assuming that there are no changes in your financial situation. To complete this process, additional information will be required, including but not limited to a satisfactory property appraisal and appropriate evidence of title for the property being purchased. The availability of our mortgage products are subject to change. This pre‐approval should not be considered a commitment to lend until all lender conditions have been met. This letter expires: February 22, 2016.
show expired ▸
3 expired letters
approved
market entry approved
Helping Lenders Convert Prospects
confidential
The Lender
The Buyer
RPM Mortgage Inc.
31 years old, first-time buyer
Approved reduces quote to close time by 1-2 weeks.
Unwilling to wait weeks to find out how much she can afford.
Approved cuts 5-10 hours of time spent on loan officer processing.
Approved makes pre-approvals as easy as using Instagram.
Approved lets lenders qualify their customers outside business hours.
Approved is mobile first, for young professionals on-the-go.
approved
More Effective Use of Lender Marketing $$ Approved sells to SMB lenders / brokers. Top 500 Lenders
(~16,000 total lenders / brokers)
Approved vastly decreases prospect falloff, by reducing application to lock time. 70% all US Deals
Faster turn increases buyer attach rate lender marketing spend 20x more effective. (~2-3% vs >70% conversion)
confidential
approved
Approved Pricing Model Lender pays a monthly SaaS seat license based on origination volume.
$250
per origination (blended avg)
x
confidential
100
avg originations / mo
$25k
revenue / mo / lender
=
Each lender worth up to $300k / year
approved
Lender Acquisition Strategies Realtor Referrals
Trade Shows
Relators largely dictate purchase decisions.
Money 20/20, Inman Connect, MBA Banker’s Annual Conference.
Direct Sales Channel sales on top 500 lender / brokers.
Distribution / Channel Deals
Loan Officer / Manager Direct
RE Portals, “Broker in a Box”, Ellie Mae app network, CRM.
FB, Twitter direct ad targeting to influencers.
Content Marketing Be the voice of modern mortgage technology.
Trade Associations NAR, local MLS, Credit Unions, Brokers, Lenders Associations.
Experiment: Try everything. See what sticks. confidential
approved
The Competitive Space Tech-Powered Broker / Lenders
Direct to Consumer Lending
Expedite Mortgage Process Technology
The Approved Difference: Automated processing capabilities - virtual loan officer in cloud A smart loan application - nobody wants 10 pages of forms An open API / platform for lender pre-approvals confidential
approved
progress approved
State of the Product Document Gathering / Verification v1: automatic bank transaction categorization; Supporting doc PDF generation for Loan Officers. Digital paper trail.
4:21PM
iPad
approved
hello, Andy ▾
pre-approvals
dashboard
get started You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
Lender / Buyer Dashboard v1: invite clients and securely share loan documents.
100%
Connect Accounts
3 Get pre-approved.
Get Credit Score
Get Pre-Approved
financial overview generated: 1/12/16
APIs: Plaid, Mitek, IDAnalytics, Corelogic, Credit Technologies.
income
savings
Tech Stack: Node back-end; React front-end.
expenses
Partners: Griffin Funding launching July; Home Point Financial in September, One Trust Accolades: EvoNexus Incubated, San Diego Venture Group “Cool Company” 2016 confidential
view
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
?
?
?
show accounts ▸
Connect Accounts
credit score pulled: 1/13/16 by Credit Technologies
view
730
723
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
poor < 619
fair 620-659
good 660-719
approved excellent 720+
Convertible Seed Round Raising $1.5M on a $6M cap for: Doc gathering, loan app & pre-approval platform with API access on web, mobile web. Core team: Full Stack Engineering, Channel Sales / Mktg, Customer Success. 10-15 lenders; 1,500 loans / mo. Expenses through end of 2017. Social Capital leading round at $500k $150k from Angels $350k+ still available confidential
approved
18 Month Use of Funds Projected Payroll
Fixed Expenses
a 30,000 ft look
conservative estimates
$0
2 Full Stack Developers
$95k-$130k
Office Space
(incubated)
Front End Developer
$90k-$105k
IT & Hardware
$60k
Channel Sales
$75k-$125k
Legal & Admin
$70k
CEO & CTO
$75k
API Usage Costs
$30k
Pilots: Mid-Late July with Griffin; Early Sept with Home Point Loans: 500-1000 loans by EOY Sales: 10 lenders by Mid 2017 confidential
approved
approved Andy Taylor cell: (650) 575-1289 [email protected] @approved
appendix approved
Most Commonly Requested Documents The most common documents used for verification of a standard borrower’s financial health. Paystubs - last month Bank statements - last 2 mo Tax returns / W2s - last 2 yr
confidential
401K / Investments - most recent statement Credit Report Letters of Explanation (LOEs)
approved
Loan Production Costs are High The average cost to produce a loan in Q4’14 was $7k, or 3%. Since Dodd-Frank regulations enacted, costs increasing 18% YoY. Small to medium sized lenders are increasingly unprofitable. $1.2T annual US originations x
3%
$36B confidential
average production expenses / loan estimated total annual production expenses
approved
Customer Experience is Slow & Invasive 49 days start to close in 2015. You will miss out on home if not pre-approved. This is the current pre-approval experience on wellsfargo.com.
…plus 12 additional form pages. confidential
approved
Supporting Documentation is Critical Supporting documentation is used as part of “Reps & Warrants” in the securitization process of mortgage-backed securities. However, docs are usually borrower-supplied and verified manually. 2015 J.P. Morgan “Reps & Warrants” Statement “…the originator employed a commercially reasonable process designed to test the reasonableness of the income used to approve documented Mortgage Loans.”
Approved, which verifies documents directly from banks exceeds existing “Reps and Warrants” standards, and creates a digital “paper-trail”. confidential
approved
Share of US Originations #5-10 7%
Small Lender 65%
JPM | BofA | USB | Citi 13% Wells 15%
2014 US Origination Share confidential
approved
Lender Integration Flow Approved eCase File
4:21PM
iPad
approved
100%
hello, Andy ▾
pre-approvals
dashboard
Loan App
Fannie DU Findings
Verified DTI
Credit History
Loan Origination System
get started You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
Connect Accounts
3 Get pre-approved.
Get Credit Score
Get Pre-Approved
financial overview generated: 1/12/16
view
income
savings
expenses
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
?
?
?
Automated Underwriting
show accounts ▸
Connect Accounts
credit score pulled: 1/13/16 by Credit Technologies
view
730
723
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
poor < 619
fair 620-659
good 660-719
excellent 720+
pre-approval pre-approval Approved estimates you can afford a house up to:
Congratulations, you have been pre-approved for:
$750,000
$750,000 ZIP
92104
down payment
$
150,000
loan type 30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit.
confidential
approved
Concepts: Real Estate Portal Integration
Get Approved Instantly
$
Get Approved Instantly
Get Approved Instantly
confidential
$
Get Approved Instantly
approved
Get Approved Instantly
$
Get Approved Instantly $
Get Approved Instantly
Get Approved Instantly
confidential
$
Get Approved Instantly
approved
7/05/2016
The Approved Team Advisory Board Mike Koh 20 year serial entrepreneur Founder/CEO Koh Investments Founder/CEO Fypio (now OpenHouse) Founder/Owner MikesBAapartments.com
Andy Taylor, Co-Founder & CEO Director of Product, Redfin (6yrs)
Built and managed the 20 person product team across SF and Seattle. Product and UX expert, with 17+ years of PM / Eng experience.
Navtej Sadhal, Co-Founder & CTO Dev Platform Manager, Redfin (8yrs)
Responsible for major platforms and architectural infrastructure, including latest React.js framework, mobile web, and apps.
Combined 14 years of working deeply with buyers, sellers and agents.
confidential
Dan Kimerling Dir. API Banking SVB Co-Founder Standard Treasury Giftly, Microsoft, TechCrunch, YCombinator Bill Lyons Co-Founder/CEO Revestor CEO Griffin Funding CEO LEI Financial Greg Fischer Partnerships at Realtor.com & Doorsteps Real Estate broker for 10 years / 3 states
approved
approved is building the framework for on-demand mortgages. We’re building out the core infrastructure that lenders need to compete in the lending world of tomorrow. We’re bringing the user experience into the modern times. approved
Problem: Chasing Down Supporting Docs Now: Manual Labor Start
Week 1
Identity Verification
Credit Check
Employment
30 seconds
Start
Checking / Savings
401K / Investments Average Expenses
60 seconds
Identity Verification
Credit Check
Employment
{
Checking / Savings
401K / Investments Average Expenses
Week 2
Approved: Modern APIs
financial-services APIs
online tax returns
identity verification APIs
e-signatures
Loan Prospector / Desktop Underwriter Automated Underwriting APIs
online credit checks
employment records
fraud detection
Approved makes it easier for Loan Officers to close more loans. confidential
approved
Problem: Loan Apps Length: Simply digitizing the 1003 form is not enough - it’s long and unwieldy. Office Hours: How are loan officers going to walk a prospect through the form when it comes in at 2am? Errors: Transcription errors common. Forms are often incomplete.
Approved reduces loan app friction for borrowers, reducing errors 24/7. confidential
approved
Problem: Fall-Off Speed: ~70% of borrowers go with the first lender who approves / locks them. Qualification: Leads that come in are unqualified, but being called by multiple, competing lenders. Houdini: Lead will literally disappear midprocess.
Approved gets a borrower to lock faster, converting at 20x. confidential
approved
A Redefined Origination Experience 1
2
3 approved
4:21PM
iPad
4:21PM
iPad
4
100%
hello, Andy ▾
pre-approvals
dashboard
Pre-Approval Letter for Andy Taylor approved Generated 1/22/2016, 12:32pm
100%
dashboard share
download
hello, Andy ▾
pre-approvals
pre-approval
get started
Congratulations, you have been pre-approved for:
You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
3 Get pre-approved.
$750,000
ZIP
down payment
92104
$
loan type
150,000
30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit. January 22,3.75% 2016 APR, 1.025% prop tax, 0.25% insurance, single family, owner-occupied. Loan Assumptions: Connect Accounts
Get Credit Score
Get Pre-Approved
Subject to the conditions of this letter, Benchmark Mortgage has pre-approved Joseph Smith and Suzanne Smith for a home loan.
Generate Letter
financial overview generated: 1/12/16
income
savings
expenses
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
We have verified the borrowers’ income, expenses, and savings, pulled credit, and pre-approval letters been given a notice of pre-approval from Fannie Mae’s Desktop Underwriter
?
underwriting system.
approved
2612 Bancroft Street
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
approved
?
show accounts ▸
share
delete
expires: in 4 days $694,000 This was generated bydown Approved oncreated: behalf of1/22/16 Benchmark Mortgage. San Diego, CApre-approval 92104 with 20% If you have any questions, don’t hesitate to call at 1 (800) 123-4567, or email usview at [email protected].
approved
share
delete
share
delete
1585 Dale Street
no street specified
$750,000
San Diego, CA 92104
with 20% down
expired letters credit score
723
view
show expired ▸
3 expired letters
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
fair 620-659
expires: in 2 hours created: 1/22/16
This pre‐approval is issued based on your current credit history, income, assets and debt assuming that there are no changes in your financial situation. To complete this process, additional information will be required, including but not limited to a satisfactory property appraisal and appropriate evidence of title for the property being purchased. The availability of our mortgage products are subject to change. This pre‐approval should not be considered a commitment to lend until all lender conditions have been met. This letter expires: February 22, 2016.
view
730
poor < 619
expires: in 10 days created: 1/22/16
view
Connect Accounts
approved
$752,000
Income, Savings, Expenses (verified 1/22/16) San Diego, CA 92104 with 25% down Credit score and history (pages 6-10)
?
Fannie Mae Desktop Underwriter Pre-Approval (pages 2-5)
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
pulled: 1/13/16 by Credit Technologies
New Pre-Approval
Address: 2612 Bancroft Street, San Diego, CA Purchase Price: $750,000 Loan Amount: $600,000 (20% down)
view
good 660-719
excellent 720+
pre-approval pre-approval Approved estimates you can afford a house up to:
Congratulations, you have been pre-approved for:
$750,000
$750,000 ZIP
92104
down payment
$
150,000
loan type 30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit.
Dashboard invite to approved sent from lender CRM or loan officer directly.
confidential
Lightweight 1003, digital needs list, & automatic doc gathering and instant asset verification.
About
Jobs
© 2016 Approved
Terms of Use
Privacy Policy
approved creates digital loan file, uses DU findings to generate loan conditions.
Verified docs and loan application are securely stored and shared with lender CRM, LOS.
approved
On-Demand Analysis 4:21PM
iPad
Automatic: Generate and analyze supporting docs; Fannie / Freddie automated underwriting analysis. Income / Reserves: auto-import recurring income, and take stock of savings. Analysis: analyze average monthly spending. Instantly calculate Debt / Income. All Electronic: create an electronic 1003 loan application paired with docs. confidential
approved
100%
hello, Andy ▾
pre-approvals
dashboard
get started You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
Connect Accounts
3 Get pre-approved.
Get Credit Score
Get Pre-Approved
financial overview generated: 1/12/16
income
savings
expenses
view
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
?
?
?
show accounts ▸
Connect Accounts
credit score pulled: 1/13/16 by Credit Technologies
view
730
723
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
poor < 619
fair 620-659
good 660-719
approved excellent 720+
Automated Findings 4:21PM
iPad
Minutes, Not Weeks: on-demand Fannie / Freddie certified, pre-approval findings. Generate needs list 24/7. Verified: financial data directly from the bank makes underwriting much easier.
Pre-Approval Letter for Andy Taylor approved Generated 1/22/2016, 12:32pm
100%
dashboard share
download
hello, Andy ▾
pre-approvals
pre-approval Congratulations, you have been pre-approved for:
$750,000
ZIP
down payment
92104
$
loan type
150,000
30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit. January 22,3.75% 2016 APR, 1.025% prop tax, 0.25% insurance, single family, owner-occupied. Loan Assumptions: Subject to the conditions of this letter, Benchmark Mortgage has pre-approved Joseph Smith and Suzanne Smith for a home loan.
Generate Letter
New Pre-Approval
Address: 2612 Bancroft Street, San Diego, CA Purchase Price: $750,000 Loan Amount: $600,000 (20% down)
We have verified the borrowers’ income, expenses, and savings, pulled credit, and pre-approval letters been given a notice of pre-approval from Fannie Mae’s Desktop Underwriter underwriting system.
approved
Regulation: meets Fannie Mae 1006 asset verification requirements & DoddFrank “Ability to Repay” rules. Integrated: Integrated into existing toolchains for automated loan apps 24/7. confidential
2612 Bancroft Street
$752,000
Income, Savings, Expenses (verified 1/22/16) San Diego, CA 92104 with 25% down Credit score and history (pages 6-10)
expires: in 10 days created: 1/22/16
view
share
delete
expires: in 4 days $694,000 This pre-approval was generated by Approved on behalf of1/22/16 Benchmark Mortgage. created: San Diego, CA 92104 with 20% down If you have any questions, don’t hesitate to call at 1 (800) 123-4567, or email usview at [email protected].
share
delete
share
delete
Fannie Mae Desktop Underwriter Pre-Approval (pages 2-5) approved
approved
1585 Dale Street
no street specified
$750,000
San Diego, CA 92104
with 20% down
expired letters
expires: in 2 hours created: 1/22/16
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This pre‐approval is issued based on your current credit history, income, assets and debt assuming that there are no changes in your financial situation. To complete this process, additional information will be required, including but not limited to a satisfactory property appraisal and appropriate evidence of title for the property being purchased. The availability of our mortgage products are subject to change. This pre‐approval should not be considered a commitment to lend until all lender conditions have been met. This letter expires: February 22, 2016.
show expired ▸
3 expired letters
approved
market entry approved
Helping Lenders Convert Prospects
confidential
The Lender
The Buyer
RPM Mortgage Inc.
31 years old, first-time buyer
Approved reduces quote to close time by 1-2 weeks.
Unwilling to wait weeks to find out how much she can afford.
Approved cuts 5-10 hours of time spent on loan officer processing.
Approved makes pre-approvals as easy as using Instagram.
Approved lets lenders qualify their customers outside business hours.
Approved is mobile first, for young professionals on-the-go.
approved
More Effective Use of Lender Marketing $$ Approved sells to SMB lenders / brokers. Top 500 Lenders
(~16,000 total lenders / brokers)
Approved vastly decreases prospect falloff, by reducing application to lock time. 70% all US Deals
Faster turn increases buyer attach rate lender marketing spend 20x more effective. (~2-3% vs >70% conversion)
confidential
approved
Approved Pricing Model Lender pays a monthly SaaS seat license based on origination volume.
$250
per origination (blended avg)
x
confidential
100
avg originations / mo
$25k
revenue / mo / lender
=
Each lender worth up to $300k / year
approved
Lender Acquisition Strategies Realtor Referrals
Trade Shows
Relators largely dictate purchase decisions.
Money 20/20, Inman Connect, MBA Banker’s Annual Conference.
Direct Sales Channel sales on top 500 lender / brokers.
Distribution / Channel Deals
Loan Officer / Manager Direct
RE Portals, “Broker in a Box”, Ellie Mae app network, CRM.
FB, Twitter direct ad targeting to influencers.
Content Marketing Be the voice of modern mortgage technology.
Trade Associations NAR, local MLS, Credit Unions, Brokers, Lenders Associations.
Experiment: Try everything. See what sticks. confidential
approved
The Competitive Space Tech-Powered Broker / Lenders
Direct to Consumer Lending
Expedite Mortgage Process Technology
The Approved Difference: Automated processing capabilities - virtual loan officer in cloud A smart loan application - nobody wants 10 pages of forms An open API / platform for lender pre-approvals confidential
approved
progress approved
State of the Product Document Gathering / Verification v1: automatic bank transaction categorization; Supporting doc PDF generation for Loan Officers. Digital paper trail.
4:21PM
iPad
approved
hello, Andy ▾
pre-approvals
dashboard
get started You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
Lender / Buyer Dashboard v1: invite clients and securely share loan documents.
100%
Connect Accounts
3 Get pre-approved.
Get Credit Score
Get Pre-Approved
financial overview generated: 1/12/16
APIs: Plaid, Mitek, IDAnalytics, Corelogic, Credit Technologies.
income
savings
Tech Stack: Node back-end; React front-end.
expenses
Partners: Griffin Funding launching July; Home Point Financial in September, One Trust Accolades: EvoNexus Incubated, San Diego Venture Group “Cool Company” 2016 confidential
view
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
?
?
?
show accounts ▸
Connect Accounts
credit score pulled: 1/13/16 by Credit Technologies
view
730
723
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
poor < 619
fair 620-659
good 660-719
approved excellent 720+
Convertible Seed Round Raising $1.5M on a $6M cap for: Doc gathering, loan app & pre-approval platform with API access on web, mobile web. Core team: Full Stack Engineering, Channel Sales / Mktg, Customer Success. 10-15 lenders; 1,500 loans / mo. Expenses through end of 2017. Social Capital leading round at $500k $150k from Angels $350k+ still available confidential
approved
18 Month Use of Funds Projected Payroll
Fixed Expenses
a 30,000 ft look
conservative estimates
$0
2 Full Stack Developers
$95k-$130k
Office Space
(incubated)
Front End Developer
$90k-$105k
IT & Hardware
$60k
Channel Sales
$75k-$125k
Legal & Admin
$70k
CEO & CTO
$75k
API Usage Costs
$30k
Pilots: Mid-Late July with Griffin; Early Sept with Home Point Loans: 500-1000 loans by EOY Sales: 10 lenders by Mid 2017 confidential
approved
approved Andy Taylor cell: (650) 575-1289 [email protected] @approved
appendix approved
Most Commonly Requested Documents The most common documents used for verification of a standard borrower’s financial health. Paystubs - last month Bank statements - last 2 mo Tax returns / W2s - last 2 yr
confidential
401K / Investments - most recent statement Credit Report Letters of Explanation (LOEs)
approved
Loan Production Costs are High The average cost to produce a loan in Q4’14 was $7k, or 3%. Since Dodd-Frank regulations enacted, costs increasing 18% YoY. Small to medium sized lenders are increasingly unprofitable. $1.2T annual US originations x
3%
$36B confidential
average production expenses / loan estimated total annual production expenses
approved
Customer Experience is Slow & Invasive 49 days start to close in 2015. You will miss out on home if not pre-approved. This is the current pre-approval experience on wellsfargo.com.
…plus 12 additional form pages. confidential
approved
Supporting Documentation is Critical Supporting documentation is used as part of “Reps & Warrants” in the securitization process of mortgage-backed securities. However, docs are usually borrower-supplied and verified manually. 2015 J.P. Morgan “Reps & Warrants” Statement “…the originator employed a commercially reasonable process designed to test the reasonableness of the income used to approve documented Mortgage Loans.”
Approved, which verifies documents directly from banks exceeds existing “Reps and Warrants” standards, and creates a digital “paper-trail”. confidential
approved
Share of US Originations #5-10 7%
Small Lender 65%
JPM | BofA | USB | Citi 13% Wells 15%
2014 US Origination Share confidential
approved
Lender Integration Flow Approved eCase File
4:21PM
iPad
approved
100%
hello, Andy ▾
pre-approvals
dashboard
Loan App
Fannie DU Findings
Verified DTI
Credit History
Loan Origination System
get started You’re just a few short steps away from getting pre-approved.
1 Connect your online
2 Pull your credit.
bank accounts.
Connect Accounts
3 Get pre-approved.
Get Credit Score
Get Pre-Approved
financial overview generated: 1/12/16
view
income
savings
expenses
$8,257
$156,931
avg monthly income
est annual gross income
$150,000
$240,000
liquid savings
total savings
$8,000
pull credit for debt
avg monthly expenses
recurring credit debt
You have 3 accounts connected. The more you connect, the better your loan officer and agent can assess your income, savings and expenses.
?
?
?
Automated Underwriting
show accounts ▸
Connect Accounts
credit score pulled: 1/13/16 by Credit Technologies
view
730
723
741
Experian
Equifax
TransUnion
Fair Isaac (Ver. 2)
Facta Beacon 5.0
FICO Classic (04)
poor < 619
fair 620-659
good 660-719
excellent 720+
pre-approval pre-approval Approved estimates you can afford a house up to:
Congratulations, you have been pre-approved for:
$750,000
$750,000 ZIP
92104
down payment
$
150,000
loan type 30yr-fixed
Based on: $156,931 gross annual income, $240,000 savings, $5,230 monthly debt, excellent credit.
confidential
approved
Concepts: Real Estate Portal Integration
Get Approved Instantly
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confidential
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approved
