Texas lender Mid America Mortgage rebranded as Click n’ Close to expand into the mortgage technology industry following the sale of the majority of its retail lending operations.
Click n’ Close will retain retail operations related to its reverse mortgage and lending business for Native Americans, the company said Monday. The lender will also focus on offering down payment assistance (DPA) and adjustable-rate mortgage (ARM) products through its third-party originator channels.
With the firm entering the mortgage tech industry, the lender will offer some of its proprietary, in-house technology, developed under the Mid America Mortgage brand, across the industry for different lenders who want to build an end-to-end digital mortgage process.
“The investments we’ve made in technology and digital process have paid tremendous dividends, enabling us to save upwards of $300 per loan file,” said Click n’ Close CEO Jeff Bode. Those savings will be used for additional technology improvements and produce specialized products to address “today’s housing market challenges,” he said.
The expansion comes as numerous mortgage tech vendors are feeling the pinch of a downmarket in which housing inventory is tight, reifs are shrinking and mortgage rates are surging.
Tomo, a fintech startup laid off 44 employees, almost a third of its employees in late May. Tomo notched a valuation of $640 million after raising $40 million in Series A funding in March but wasn’t immune to the rapid rise in interest rates.
HousingWire recently spoke to Jonathan Scarpati, Senior Vice President of Wholesale Lending at Finance of America Reverse, about tapping into the reverse mortgage market in light of the changing market.
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Publicly traded Blend Labs, which debuted on the New York Stock Exchange in July 2021, also said it will issue pink slips to 200 workers, about 10% of its workforce, by the second quarter of 2022. Blend, which hasn’t turned a profit since going public, reported increased operational losses of $69.7 million in the first quarter of this year.
The firm, established in 1940, initially offered originating and servicing residential and commercial real estate loans. Most recently, Mid America Mortgage adopted electronic mortgage closings (eClosings) and promissory notes (eNotes), according to the firm’s website.