So, What’s an AI Powered Mortgage Advisor?
You’ve probably heard of a mortgage broker or a loan officer, but what the heck is an AI Powered Mortgage Advisor and, more importantly, why do you need one?
To answer that question we have to go back to the subprime mortgage crisis and all the things that were uncovered as the economy recovered.
In 2010, one of our co-founders, Steve Better, was a Consumer Loan Underwriter for Wells Fargo. He was tasked with reviewing applications for loan modification. These were applications by people who were trying to stay in their homes. As he reviewed the applications, he saw the mistakes over and over again. Consumers consistently overstated their credit scores and income, and underwriters approved those loans based on incorrect information.
As Steven continued in his career as an underwriter he began to understand how broken the process was. It took almost 60 days to close a loan and the application was paper-based. Applications were frequently stalled because they were missing documents and the borrower had no insight into the process. Borrowers never knew how much longer the process would take and If the application was declined, there was no clear, actionable information to use when preparing to reapply. Worst of all, the application was so long and involved most borrowers didn’t shop for a more competitive loan. He started to wonder if there was a better way to do things.
Ten years later the process hasn’t changed much but the price of a home has. In the aftermath of the subprime crisis lobbyists convinced the federal government that Private Equity Groups were the only entity that could purchase all the homes that were abandoned. And the largest generation in history entered their prime home buying years. Today, adulting with a college education, a car and a home requires about $300k in debt.
In the largest financial transaction of your life, shouldn’t you be in control?
Since the process of applying for a mortgage hasn’t changed and prices have skyrocketed, Steven recognized that borrowers need a more effective way to navigate the process. That’s why he wanted to create Home Lending Pal and Kev, the first AI powered mortgage advisor. Through his personal network he met Bryan, our CEO, and they began working on the first iteration of the platform. Now, three years later Home Lending Pal is a reality.
Personalized Mortgage Advice
Home Lending Pal gives you access to the same information that underwriters use to evaluate your loan application. In 7 mins you can review your Equifax credit score and your verifiable assets and income. After completing a short assessment a new visitor can shop for homes on the site and see:
We know there are already platforms that let you shop for a loan and those platforms all have great rates. There are a couple of things you should know about them. First, those rates are great if you have an 800 FICO score and a 6-figure income. If you don’t, then your rate and loan terms will be vastly different. Second, those platforms are for lead generation. As soon as you enter your information the lenders race to call you because the first person who talks to you will most likely close the loan.
Kev is Here to Help!
If you aren’t ready to apply for a mortgage, or you can’t get approved for the loan you need to buy the home you want, Kev is there to help. Kev is an AI-powered chatbot that will answer your questions about the process and give you a plan to improve your finances. No pressure, we promise. Instead of asking friends or spending hours online, you have a single source of advice that is personalized for your financial situation.
When you are ready, HLP will match you to lenders who specialize in your situation. For example if you have a lot of student debt, especially relative to your income, big banks won’t underwrite your loan but there are regional banks that will take great care of you. We’ll match you to those banks and let you two take it from there. And when you talk to a lender you are prepared with all the information to be confident as you go through the process.
Algorithms have worked to get you to spend more money, they show you content on social media platforms and they recommend movies to watch. Isn’t it time that they help you make the biggest financial decision of your life?