By the end of 2021, OriginPoint will provide a service to send inquiries to consumers in selected Compass markets, the broker’s latest step towards end-to-end transaction.
Compass has incorporated the last element into its ROI puzzle with OriginPoint launch, a new mortgage company co-formed with retail mortgage giant Guaranteed Rate.
“Over the past eight years, Compass has focused on creating a company that empowers the best agents across the country, and with OriginPoint we are creating a direct link between these agents and the leading loan officers in the industry,” Compass founder said Tuesday director Robert Reffkin. “Buying a home is the most emotionally and financially significant decision in most people’s lives, and the agent’s role is to make the process as stress-free as possible… “
“OriginPoint brings together two digital-focused companies to provide a mortgage product that provides a seamless and transparent experience for agents and their clients, ultimately leading to a simplified real estate transaction for all involved,” he added.
OriginPoint is in the early stages of its launch, integrating between the Guaranteed Rate digital mortgage platform and the Compass cloud software. OriginPoint has not yet received a state mortgage license; However, a Compass spokesman told Inman that the new venture will be launched by the end of 2021 in “select markets”.
Breaking News: Compass announces the launch of its own mortgage company called @originpoint, to help @Compass Agents provide an easier, faster, transparent and smoother closing process for their buyers and sellers. pic.twitter.com/SUCfcihP50
– Robert Reffkin (@RobReffkin) Jul 13, 2021
Once launched, OriginPoint will serve home buyers and sellers in all markets Compass serves and is licensed to, regardless of their agent affiliation.
In addition to creating a better experience for consumers, Compass and Guaranteed Rate said the venture will also improve mortgage terms for agents. “OriginPoint will directly link agents with loan officers to create a cohesive team that will reduce consumer uncertainty in the home buying process and ultimately lead to much greater success and customer satisfaction,” they explained.
Guaranteed Rate founder and CEO Victor Chiardelli said the partnership with Compass to create OriginPoint is “truly exciting” as Guaranteed Rate is already the number one non-bank lender for Compass agents, whose clients often require the large loans they specialize in.
The Guaranteed Rate has a proven track record as they have helped other real estate brands as well, including @properties and Realogy launch their own mortgage services…
“Partnering with Compass and Robert Reffkin to quickly build a best-in-class technology-driven mortgage company is truly exciting,” Seardelli said in a prepared statement. “With soaring interest rates, limited housing supply and declining refinancing, now is the perfect time to hire the best of the best loan officers and sales executives across the country.”
OriginPoint is a key part of the Compass profitability strategywhich includes the launch of related mortgage, title deed and escrow services. In a brokerage profit and loss statement for the first quarter in MayReffkin said he expected a significant return on his investment in these services as Compass strives to create an industry-leading end-to-end platform.
“At Compass, our strategy is to replace today’s overly complex, outdated paper-based workflow with a smooth, fully digital end-to-end platform it enables every real estate agent to provide their buyers and sellers with an exceptional experience, ”he said. “It will take time and ongoing investment, but the opportunities are enormous.”
In a statement emailed to Inman, a Compass spokesman estimated the market value of current related services at $ 85 billion. A spokesman declined to provide any further details on OriginPoint’s projected revenue or performance as it will be available during Compass’s second quarter earnings report.
“This new venture gives Compass the opportunity to apply its agent-based approach and end-to-end technology platform to the mortgage business to improve the efficiency of this entire critical component of the real estate transaction,” they said.