Real estate tech company Spruce announced a joint project Tuesday with insurtech platform Digital Partners and American Digital Title Insurance Company to offer a fully underwritten title commitment that it says can be completed in minutes.
The new model has initially launched in Colorado and Arizona, with additional states to follow throughout 2021.
Spruce said the new automated underwriting offering is part of its larger vision is to enable one-click real estate transactions. The company said the new offering is enabled via a unique combination of proprietary data science, machine learning, and private and public data sources.
“This new automated underwriting model is yet another piece in the puzzle bringing us closer to fulfilling our mission of building the one-click checkout for real estate transactions,” said Patrick Burns, cofounder and CEO of Spruce. “Working closely with our clients, we’ve successfully cut down on transaction times and cost, all while increasing much needed predictability and transparency.”
The joint project illustrates the tight partnership of Spruce with Munich Re, which owns both Digital Partners and American Digital Title Insurance Company and is an investor in Spruce as well. In September, the companies announced a joint project to offer cost-effective title insurance.
“The demand for an automated, sophisticated, and predictable clear-to-close process is greater than ever as more companies are trying to give homeowners and investors a genuinely fairer deal,” he said. “The new model allows for lower operational costs, enabling Spruce to pass savings onto its customers.”
The typical title underwriting process can take days when factoring in turn times. Spruce is promising a quicker turnaround, without sacrificing quality or security.
Last May, Spruce raised $29 million in Series B funding with an eye on expansion, as well as accelerating the development of its proprietary technology. Investors in that round were Scale Venture Partners, with participation from Zigg Capital and Bessemer Venture Partners. Spruce raised $19 million in its series A round in 2018.
In 2019, American Digital Title Insurance Company partnered with ATTOM Data Solutions in 2019 to create a custom approach to title search and help identify problematic homes that might require more attention prior to purchasing.