American Express (NYSE: AXP), (AURC) – American Express transfers clients to finance companies to meet mortgage needs: report

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American Express (NYSE: AXP) directs its mortgage clients bypass traditional conventional lenders in favor of a pair of fintech partners.

Amex recommends: According to CNBC reporteligible American Express clients who take out a mortgage in Better.com or Rocket mortgage from Quicken Loans, separation Rocket Companies Inc. (NYSE: RKT) can get a $ 2,000 loan for a qualifying mortgage or a $ 6,000 loan for a large mortgage.

An American Express spokesperson told CNBC that there is no revenue-sharing agreement between the companies and fintech companies, although an American Express subsidiary invested in a Better.com Series C fundraiser in 2019.

Related link: Home Price Rises Accelerate At An “Incredible” Speed: S&P Case-Shiller Report

About those fintechs: Quicken Loans was the nation’s largest mortgage lender in 2020, according to Quicken Loans, with over 1.1 million loans worth $ 314 billion. Consumer Financial Protection Bureau Housing Mortgage Disclosure Act data. But this volume turned out both by default and by design.

“This is a general trend since the financial crisis,” he said. Greg McBride, chief financial analyst at BankRate.com. “The banks refused – but did not eliminate – the origin. Nonbanks more than filled the void as the market rose, and large banks often buy service rights, so they play with less risk and cyclicality from the source. ”

As for Better.com, the $ 20 billion in 2020 mortgages lags well behind Quicken, but the company appears to be picking up steam. It was $ 4 billion in 2019 and the company is expected to see more growth in the fourth quarter when it goes public through SPAC. Aurora Acquisitions Corp. (NASDAQ: AURC).

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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