Photo - Automated Mortgage Processing SaaS Platform
38042

Automated Mortgage Processing SaaS Platform

USA, California
Market: Real estate, Financial services, Another
Stage of the project: Operating business

Date of last change: 10/01/2019
Min investment
$  50.000
Total required
$ 1.000.000
Rating
equalizer 225 из 1000
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Idea

Mortgage process facilitator that centralizes and simplifies documentation collection and review to reduce touches with underwriting by getting the right information and data the first time, direct from the source through API integrations and OCR text recognition, while automating review of data through algorithms and text recognition, creating a clean loan submission that reduces time, effort, and frustration for all parties involved.

Current Status

• 761+ Current Paying Users - $905k ARR w/in Only 4 Months of Going Live, and less than 1% churn over past 12 months (Cash Flow Positive/Profitable)

• Flagstar Accelerator Inductee (5th Largest Mortgage Lender in US)

• NAR REach/Second Century Ventures 2018 Graduate (included $100k investment)

• Realogy FWD Tech Summit Finalist (2018)

• Inman Innovator Award Finalist 2018 (Most Innovative Company)

• Digital Mortgage Conference Best in Show

• Banking Disrupted Summit Winner (Most Disruptive Fintech Company)

Market

There are 650k active Mortgage Loan Originators (MLOs) in the US (+25% supporting staff) and ~10mm transactions processed yearly over the past decade. RealKey will evolve to support other participants in the ecosystem, such as real estate agents, insurance, and title/escrow. RealKey is solving for the most complex loan consumers can obtain. RealKey will expand to support student/auto/personal loans, as well as wealth management/financial planning, and eventually plans to go consumer direct.

Problem or Opportunity

Today, lenders receive unsupported and incomplete applications through Points of Sale or by phone from borrowers. The MLO runs that data through Automated Underwriting Systems to get worthless feedback and request basic documentation (often the same documents twice), resulting in tons of back and forth with underwriting. Their internal systems provide no facilitation on what to gather and when. These gaps lead to drastic reductions in NPS scores.

Solution (product or service)

RealKey is a web-based mortgage process facilitator that centralizes and simplifies documentation collection and review to reduce touches with underwriting by getting documents and data are collected direct from the source through APIs or OCR, and stored securely and centrally for all parties to access. Review of data is automated through algorithms and OCR. Smart conditioning, centralized chat, and auto-updates to parties facilitates the collection of additional required conditions to get the right documents the first time efficiently. Smart stacking creates the "Perfect" submission package to underwriting.

Competitors

RealKey fills the gaps of current industry systems: LOS (Ellie Mae, Calyx), POS (Blend, Rocket Mortgage). Digital Validators (FormFree, Promontech), and current manual processes. RealKey is the only platform taking a documents first approach to automate processing and underwriting to get all the right documents upfront through integrations, OCR, and automated rules/algorithms to facilitate documentation collection and review. Making all potential suitors.

Advantages or differentiators

RealKey has a durable advantage. Our CEO's background as the top Mortgage Originator in the US has been built into the logic of the system to help qualify more people through a unique decision tree and streamline interaction with all parties. UI designed by the former TurboTax Design Lead are patented and proven to decrease churn and improve adoption. RealKey is the only company unifying all parties into a centralized and neutral platform. Key endorsements further our advantage.

In Summary:
1st Mover Advantage, Strategic Investors/Endorsements, Network Effect, Improved Efficiency Over Time, Increasing Cost to Switch Over Time, Filling Gaps in Current Products, Unparalleled Domain Knowledge w/ World Class Leadership Team

Finance

RealKey currently charges a monthly fee of $99/Mortgage professional (sales, processing, underwriting, and management). Future features allow for a $35-70/transaction fee to mortgage loan originators. The average MLO closes 36 transactions/year. Tiered pricing entices enterprise clients to add more users, and a discount is provided to powers users. Fees are charged for integrations (Title/Escrow, Insurance, etc.), as well as pay per click for leadgen to these parties. Future evolution includes leadgen for untethered consumers.
3-Year Revenue Forecast:
2019: $1,659,604
2020: $7,692,026
2021: $40,012,019

Business model

RealKey currently charges a monthly fee of $99/Mortgage professional (sales, processing, underwriting, and management). Future features allow for a $35-70/transaction fee to mortgage loan originators. The average MLO closes 36 transactions/year. Tiered pricing entices enterprise clients to add more users, and a discount is provided to powers users. Fees are charged for integrations (Title/Escrow, Insurance, etc.), as well as pay per click for leadgen to these parties. Future evolution includes leadgen for untethered consumers.

Money will be spent on

Development/Design - 40%
Marketing/Business Development - 35%
Legal/Operations - 15%

Offer for investor

$1mm offer at a $10mm valuation for those coming in with $25-100k, $9mm for ($100-250k), $8mm ($250-700k), and $7mm for anyone taking the rest of the round. All investments are made utilizing SAFE Notes with Pro Rata rights.

Team or Management

Risks

Maintaining company culture, losing focus or improper prioritization of resources for features our clients don't want, external or internal hacks (security), or lack of capital.

Incubation/Acceleration programs accomplishment

Batchery - Completed Q4 2016
NAR REach - Completed Q4 2018

Won the competition and other awards

• Flagstar Accelerator Inductee (5th Largest Mortgage Lender in US)
• NAR REach/Second Century Ventures 2018 Graduate (included $100k investment)
• Realogy FWD Tech Summit Finalist (2018)
• Inman Innovator Award Finalist 2018 (Most Innovative Company)
• Digital Mortgage Conference Best in Show
• Banking Disrupted Summit Winner (Most Disruptive Fintech Company)

Invention/Patent

Patents filed Globally for Interfaces, LiveSync Feature, Decision Tree, and BizModel

Photos

Photo 1 - Automated Mortgage Processing SaaS Platform

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address