Compass, best known for its technology tools that help real estate agents market themselves and their ads online, wants to expand their business by adding technical tools to the mortgage application process. According to Compass, mortgages are, of course, an important part of most real estate transactions that can go wrong.
The brokerage firm believes that its new company OriginPoint, will provide a faster, smoother and more transparent home buying process for buyers, sellers, agents and loan officers.
“With rising interest rates, limited housing supply and a slowdown in refinancing, now is the perfect time to hire … loan officers and sales executives across the country,” said Victor Chiardelli, founder and CEO of Guaranteed Rate. The guaranteed rate has covered over $ 60 billion in loans since the beginning of 2021.
OriginPoint will serve clients of Compass real estate agents. According to the company, it will “directly link agents with loan officers” to create more cohesive teams that can reduce consumer uncertainty throughout the home buying process. This, he says, will lead to greater customer access and satisfaction.
What Compass didn’t say, but what’s obvious is that the mortgage market also represents a multi-billion dollar opportunity for the company. A compass is also needed, because although recently raised $ 450 million through a public offering, as a result of which the company entered the stock market, it remains unprofitable. In its last fiscal year, 2020, the company suffered a loss of $ 270 million, although this was an improvement from a loss of $ 388 million in 2019.
Compass announced that OriginPoint will be available in all markets in which it does business.
“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,” said Robert Refkin, founder and CEO of Compass. “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.”
During the company’s first quarterly income statement in May, Refkin said Compass also hopes expand into related service sectors such as title and escrow, although no specific plans have been announced yet.