Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How Biden’s Neighborhood Homes proposal impacts real estate investors

Dubbed the Neighborhood Homes Tax Credit, the proposal is part of the larger American Jobs Plan legislation — also known as Biden’s infrastructure plan. Here's a look into how it impacts real estate investors.

IPO / M&A

Blend hopes to be valued at $4B following IPO

Company plans to sell 20 million shares between $16 and $18 each

Mortgage software platform Blend Labs set terms for its initial public offering Tuesday including its goal to raise up to $360 million for a targeted valuation of nearly $4 billion. According to the California-based software company, Blend is offering 20 million shares in the IPO priced between $16 and $18 each.

The company also announced expectations to have a total of 219.6 million Class A, Class B and Class C shares outstanding after the IPO. Goldman Sachs & Co, Allen & Company and Wells Fargo Securities are the IPO’s lead underwriters, according to the filing. The company will be listed on the New York Stock Exchange under the symbol “BLND.”

After filing confidentially for its listing in April, Blend was last valued at $3.3 billion following a Series G funding round from Tiger Global Management and others in January 2021. It has raised a total of $655 million since its founding in 2012, according to Crunchbase.

Blend, which was named as one of HousingWire’s 2021 Tech 100 winners, has steadily grown to be a powerhouse in the mortgage tech industry. Blend’s white label technology is what powers mortgage applications on the site of banks such as Wells Fargo and U.S. Bank and integrated with CoreLogic in 2019 for an easier access line to borrowers’ credit. 

The company also stepped in to the title insurance realm in March after Blend announced it was expanding its cloud-based platform thanks to the acquisition of Title365 from the Mr. Cooper Group. That acquisition cost roughly $422 million.


How to identify fraud risks early in the origination process

Now, more than ever, lenders need a solution that creates more efficiencies so they can better manage high volumes. First American Data & Analytics’ solutions help lenders better identify fraud risks and errors in mortgage applications.  

Presented by: FADT

Established in 2012, Blend has been run by its co-founders ― including CEO Nima Ghamsari, a former employee of analytics giant Palantir Technologies – and then Blend President Timothy Mayopoulos, a former chief executive officer at Fannie Mae.

In a 2020 interview with HousingWire, Mayopoulos said the company is interested in delivering closings in whatever format is deemed necessary – whether that be digital, hybrid or in-person. But Mayopoulos has also stated that virtually “every aspect of mortgage lending can be improved through digitization.”

Like the many other mortgage giants that went public in last year’s generous market, Blend’s numbers reflect a business that took full advantage of the housing boom. According to Blend’s updated IPO, As of March 31, 2021, the number of participants in its “ecosystem” has grown by more than 1,300% year-over-year. Blend also claims that financial services firms used their software platform to process 1.4 million completed banking transactions in 2020, a 190% year-over-year increase relative to the 0.48 million completed banking transactions processed in 2019.

“For 2019 and 2020, our revenue was $50.7 million and $96.0 million, respectively, representing a 90% year-over-year growth rate,” Blend said.

However, the company is not profitable, which could deter investors not yet convinced that the product is so much more powerful than a slew of competitors.

“We incurred net losses of $81.5 million and $74.6 million for 2019 and 2020, respectively, as we have continued to invest in growth to capture the large market opportunity available to us,” the company said in its S-1.

The public markets also haven’t quite embraced the more traditional nonbank mortgage lenders that have gone public over the last year – the stocks of Rocket CompaniesUnited Wholesale MortgageGuild HoldingsloanDepot and others have largely remained level or fallen.

Leave a comment

Most Popular Articles

The housing market is losing steam

Mortgage applications for new home purchases decreased 3% from May and 23.8% year over year, suggesting buyer fatigue in the housing market.

Jul 20, 2021 By

Latest Articles

This is your last chance to nominate a 2021 HousingWire Vanguard

You have to act now! Nominate your Vanguard before midnight tonight, Friday, July 23rd. HousingWire’s 2020 Vanguard Award program recognizes C-level industry professionals and business unit leaders who have become leaders in their respective fields within housing and mortgage finance — those whose leadership is moving markets forward, each and every day. Vanguards come from diverse backgrounds and […]

Jul 23, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please