The US, as a multi-trillion-dollar real estate market, has tremendous potential for innovation and disruption. After COVID, people in the US are renting less and buying more, leading to even greater demand for real estate. Any sort of advance in efficiency, accuracy, or avoidance of default is poised to make incredible money in this market. So it is no wonder that various companies have been taking advantage of the situation to improve the mortgage process for all sides of the equation using this new technology. Here are 5 of our favorites.
DocMagic is a SaaS company founded in 1987 in Torrance, California. Their primary product is their Document Generation Solution, which allows parties in the mortgage lending process to input variables to fill in mortgage documents. This year, they collaborated with Simplifile, another SaaS company, to automate the closing process, using the Total eClose platform. Now, agents can exchange documents and information with lenders who use the software. Simplifile also offers eClose training to agents who want to use it. Currently, DocMagic has been found to have the highest market share in the mortgage document generation field.
SnapDocs is another company to watch. Based in San Francisco, its software also seeks to automate the mortgage process, though it began as a service for notaries which expanded to lending. After a recent boom in house sales in which SnapDocs oversaw 170000 home sales on its platform, SnapDocs raised $60 million in order to further integrate the lending and notarization processes into the cloud.
Orchard, based in New York City, recently received $69 million in funding, with a focus in the automation of the real estate buying process. Their particular specialty is in dual tracking– buyers who are also selling their homes while searching for a new one. They buy the dual tracker’s home with a guaranteed 90-day price, and it usually sells during that time.
Zumper, a platform to automate the rental process, recently raised $60 million in funding to help landlords manage their properties and view possible rental properties to purchase. They have seen 100% growth year-over-year. However, it remains to be seen how they will react to a difficult time in the rental market.
Opendoor, a San Francisco-based startup which flips houses after making repairs, was recently valued at $4.8 Billion in its IPO. They have made significant layoffs this year due to COVID-19 but have since resumed full functionality.