Start-up Blend gives big banks `one tap' home loans to compete with Quicken's Rocket Mortgage

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Start-up Blend gives big banks `one tap' home loans to compete with Quicken's Rocket Mortgage
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Banks have historically used armies of mortgage brokers to gather income and asset documents from prospective borrowers.

a fintech firm that processes $2 billion in loans daily for banks, has simplified the once-paper-heavy process of getting vetted for a mortgage into what it calls a one-tap pre-approval, according to CEO Nima Ghamsari.

Banks have historically used armies of mortgage brokers to gather income and asset documents from prospective borrowers, meaning that it could take days or weeks to get a pre-approval letter. Meanwhile, Quicken Loans and its Rocket Mortgage brand, which advertises mortgage approvals in as little as 8 minutes, has steadily gained share after the financial crisis, becoming the biggest U.S. residential mortgage lender in 2017., U.S.

Blend's software uses what your financial institution already knows about you – your income and assets held at the lender – to almost immediately calculate how big a loan you can afford, according to a demo provided to CNBC. After scrolling through a few options on the bank's mobile app or website, like the type of residence and the term of the loan, a pre-approval letter takes just a few clicks to generate. That could give prospective buyers an edge when home shopping."It'd be weird if I went to Amazon and I had to apply to see a list of products that I could afford," he said. "This is bringing paradigms from other industries into this industry.

Blend, which has 130 banks and credit unions as clients including giants like Wells Fargo, was founded in 2012 and is backed by investors including Andreessen Horowitz and Greylock Partners.

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