Better.com, a company that leverages machine learning and AI to digitize and automate every step of the home financing process to make homeownership more affordable and accessible, today announced it has expanded into several new markets, including Montana, New Mexico, Rhode Island, Nebraska and Wyoming. The expansion follows a $85M Series C capital raise and a record-breaking year in which the digital mortgage disruptor reported 3x year-over-year growth, bringing the total number of funded loans since inception to $3B.
“Buying a home is not only the biggest financial transaction most people take, but also one of the most cumbersome, stressful and antiquated. Mountains of paper being faxed all across the country containing sensitive consumer data is a thing of the past and we strive to make every point for the borrowers home-buying journey seamless, digital and convenient,” said Vishal Garg, CEO and Founder of Better.com. “With our market expansion into several key states, we’re pleased we can now offer borrowers in 36 states home loans that are cheaper, quicker and commission-free.”
Thanks to Better.com’s commission-free model, each customer saves an average of $3,500 in fees.
The news of the expansion follows a strategic partnership announcement where Better.com will offer customers of Ally Financial (ALLY) a streamlined mortgage experience, including pre-approval for a home loan in minutes through its website. At $194 million in revenues the mortgage division is a small but growing business at Ally, which has $180 billion in assets.
The new partnership speaks to Better.com’s cutting-edge innovation: Better.com not only closes loans 25% faster than the industry average1 (33.6 days vs. the industry average of 42 days), its proprietary technology also allows its non-commissioned loan officers to outpace the industry by 1084%, originating 45 loans per month vs. the industry standard2 of 3.8 loans per month.
With the new expansion Better.com is now live in 36 states, representing approximately 80% of the United States mortgage volume.
In the last year, the fintech startup tripled the company headcount to over 600 people, opened new offices in Oakland and Irvine and moved headquarters to the World Trade Center in downtown Manhattan.
Earlier this year, Better.com closed on $85M in Series C funding, led by Ally Financial, Goldman Sachs, American Express Ventures, Citigroup, Kleiner Perkins, Pine Brook and the Healthcare of Ontario Pension Plan (HOOPP). The funding was allocated towards driving continued growth, filling key management positions and increasing investment in the company’s innovative technology platform.
1 Ellie Mae Origination Insight Report – March 2019
2 MBA Economic and Mortgage Finance Outlook Prepared for Midwinter Conference – March 2019