Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

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UpEquity raises $50M, hopes to originate $1B in next year

"Power buyer" enables homebuyers to make all-cash offers to compete with institutional investors

Austin-based mortgage tech platform UpEquity raised $50 million in a Series B funding round led by the venture capital firm S3 Ventures. The funding will support the company’s growth as UpEquity forecasts more than $1 billion in originations over the next 12 months.

The funding consists of $20 million in equity and $30 million in debt, UpEquity said in a statement. Other investors included Next Coast Ventures, BP Capital Management, Alumni Ventures, Gaingels, Launchpad Capital, and Early Light Ventures.

Co-founded by Tim Herman and Louis Wilson, the “power buyer” startup enables homebuyers to make all-cash offers to compete with institutional investors. Then, the company receives monthly payments with interest from the homebuyers, who can avoid going through a bank to get a mortgage.

The company earns a commission from brokering or selling the mortgage that buyers take out to buy their home. In states where purchase contracts can’t be assigned, UpEquity buys the home upfront and writes the mortgage after the deal is closed.

S3 Ventures partner Charlie Plauche, who will have a seat at UpEquity’s board, said institutional investors deployed $77 billion in six months into single-family homes as an asset class, with no signs of slowing down.

What does the future hold for loan origination systems?

As the industry shifts from an emphasis on refinance to purchase originations, mortgage bankers are looking to leverage technology to speed up their origination processes and make them more efficient. This white paper will cover how cloud-based LOS’s can help mortgage bankers tackle purchase demands in a hot market.

Presented by: Calyx

“Your average homebuyer is now regularly competing against massive companies that can offer very attractive terms to sellers such as all-cash offers and fast close times,” said Plauche in a statement.

UpEquity has raised a total of $77 million to date. In February, the Series A funding round raised $25 million ($7.5 million in equity and $17.5 million in debt) to invest in product development and reduce the time-to-close to 10 days.

The company claims it takes 18 days, on average, to close a deal, while the average in the industry is closer to 50 days. Also, UpEquity says it helps homebuyers make an all-cash offer that’s four times more likely to be accepted than traditional mortgages.

The company said it has seen year-over-year revenue growth of 500%. “We’re giving our customers more choices than the legacy mortgage industry,” Herman said in a statement. “We’re able to do so without sacrificing essentials like competitive mortgage rates and while providing an exceptional customer experience.”

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