SAN FRANCISCO & SEATTLE–(BUSINESS WIRE)–Vontive, the first embedded mortgage platform for investment real estate, today announced that it has financed more than $1.1 billion of residential properties owned by investors. The company originated $750 million of loans for these properties, and it has a success rate of greater than 90% in taking a mortgage from term sheet through closure.
Borrowers have been so delighted with the experience that a majority have completed multiple transactions through the Vontive platform. Additionally, since publicly launching in April 2022, Vontive has expanded to more than 30 B2C brands that serve real estate investors. Its emerging B2C ecosystem now reaches over 1.5 million real estate investors through these brands’ customer engagement and social-media following.
Vontive enables businesses that serve real estate investors to bolt a mortgage onto their company. The white-label, no-code solution empowers any relevant brand to start a mortgage business and enter the market in weeks, avoiding the regulatory burdens, financial expense, and capital-raising requirements of starting a traditional lender.
“Investment mortgages represent a $7 trillion asset class yet they have been financed by a fragmented, no-tech lender ecosystem,” said Shreyas Vijaykumar, Vontive’s chief technology officer. “Vontive changed this by developing technology that will standardize products to finance these assets. As evidenced by the enthusiasm we’ve seen to date, empowering the brands that real estate investors trust to distribute mortgages is a winning strategy.”
Why Vontive
Part of Vontive’s appeal lies in the ability to reduce the cost of starting a mortgage business by >90% and time to market from many months to a few weeks. Vontive also removes uncertainty and shortens the timeline to close a loan—giving real estate investors the confidence they need. Additionally, Vontive standardizes all details of the mortgage and broadens the scope of underwriting—giving financial institutions that provide liquidity for investment-property mortgages a complete picture of risk and assurance of credit quality.
“Serving local markets with Vontive’s technology is an incredibly powerful way to get to know real estate investors and serve their financial needs,” said Tim Fazio, head of Certain Lending. “Nearly all of our business has come from repeat-engagement clients and their referrals. They know us, trust us, and keep returning.”
Unique Market Insight
The Vontive platform also gives an early indication of the U.S. housing market’s trends. Historically, more than half of real-estate investments financed by Vontive were sourced off market or outside multiple listing services. Vontive’s insight about investment real estate suggests annualized house price appreciation has already cooled from high double digits to low single digits. Listing price reductions in the multiple listing service data seem to corroborate price appreciation rapidly decelerating.
“After building, testing, refining, and scaling our technology in stealth mode for so long, we have been thrilled with the public response to our platform since launch, in a market where real estate investors obtain >$400 billion of mortgages each year,” said Charles McKinney, Vontive’s CEO and co-founder. “With Vontive, we are applying our knowledge of the markets and our transformative technology to help real estate investors stay the course on their strategies so that they may have liquidity in the future.”
To learn more about Vontive, please visit https://www.vontive.com.
About Vontive
Founded by credit industry and technology veterans, Vontive has created the first embedded mortgage platform for investment real estate. In doing so, it enables any bank, credit union, property technology company, or B2C brand serving real estate investors to launch its own investment-mortgage business with ease. Please visit https://www.vontive.com or follow us at linkedin.com/company/vontive.