Homie, a real estate tech startup based in Utah, already claims that it can save homebuyers thousands of dollars by automating the buying process and cutting the buyer agent commission out of a real estate deal, and now the company wants to do the same thing in mortgage lending.
Homie announced last week that it acquired another Utah-based company, Econ Mortgage, and will now be offering home loans through its platform.
In a release, the company said that expanding into mortgage lending is the logical next step as it continues towards its goal of “revolutionizing the entire real estate industry.”
Homie said that its technology allows it to streamline the loan process and restructure how loan officers are paid, offering them a flat fee instead of a percentage of the loan.
By doing so, the company claims that users will save on average up to half the typical amount paid to lenders in fees and other related mortgage costs.
The company also claims that it can offer the "lowest interest rates" in the state of Utah.
“First, Homie cut out agent commissions, now we’ve also cut out loan officer commissions – dramatically changing how much our customers pay to buy or sell a house,” said Johnny Hanna, Homie CEO and co-founder. “Our goal is to automate the entire vertical, using technology to reduce bloated commissions and traditional transaction costs.”
As part of the acquisition, Econ Mortgage’s owner, Phillip Burnett, became vice president of mortgage operations at Homie.
“Saving people money by reducing the costs associated with mortgage loans has always been the goal of Econ Mortgage,” Burnett said. “Joining the Homie team is a win-win-win for all parties involved – especially for our clients. By continuing to leverage our combined forces we anticipate some major shake-ups to the industry’s antiquated processes.”
