Staircase steps up effort to build the ‘AWS Marketplace for the mortgage industry’ with fresh $18M – TechCrunch


If you ever had to apply for a mortgage, it could be a time-consuming, costly and often painful process in filling out the application and waiting for the transaction to complete. You know that there is.

With the emergence of many digital lenders in recent years, the goal is to introduce more technology into the process, making the whole process tedious and slow. What we haven’t seen much is startups that are building their digital infrastructure to allow these lenders to offer mortgages much faster than previously possible.

Enter the stairs. A Philadelphia-based startup has developed an application programming interface (commonly known as an API) aimed at bringing together the various stakeholders involved in the mortgage formation process. By integrating all of these different parties, Staircase is committed to providing mortgage lenders and businesses with a better and significantly faster experience.

“The number of entities and systems that need to share and validate data to initiate a loan makes it a complex transaction. It’s even more difficult because all these systems don’t have a universal language. “It has become,” said Adam Kalamchi, CEO and co-founder of Staircase. “What we are doing is creating an integrated orchestration layer that brings all these stakeholders together and makes all these new mortgage-related technologies immediately available.”

Let’s look at some numbers.

It currently takes an average of 45 days to get a mortgage, and recently according to According to a report from the Mortgage Bankers Association (MBA), total mortgage production costs averaged $ 9,140 per third loan. The 2021 quarter. According to Staircase, the API provides a way for all participants in the process to talk to each other “with just a few clicks”, thus reducing the time it takes to get a mortgage and the cost of starting a loan. It can be shortened to a day. $ 1,000.

Kalamchi (former Proptech Investor) and co-founder Soofi Safavi (I’ve been involved in application development for many years at JPMorgan Chase) I started Staircase when I realized that I didn’t have a clean set of API infrastructure dedicated to mortgages.

“”There are many amazing technologies out there today, but we need to integrate them one by one. And they’re all different, “Kalamchi told TechCrunch. “What we have to do here is to make it better, faster and cheaper. Staircase does what the AWS Marketplace does for businesses to the mortgage industry. Like AWS, we want our products to be independent on their own and easy to integrate. “

That is a lofty claim. However, many investors are willing to place a bet. Staircase closed for $ 18 million in a Series A round led by Bessemer Ventures, bringing the company’s total funding to $ 24 million since early 2020. RRE Ventures, Avid Ventures, Clocktower Technology Ventures, MetaProp Ventures and Zigg Capital have also invested in the round.

“Like many of the investments in Bessemer and the industry’s most successful developer platforms, the Staircase team builds a platform for developers to solve the most important data, integration and workflow issues in the mortgage industry. I’ve been working hard for that. ” Partner Charles Birnbaum said At Bessemer Venture Partners. “”After learning about Staircase since the company was founded and working with early clients, we were excited to assist them on this journey and help bring the slowest segments of the financial services industry into the cloud. Completely replace the legacy system. “

One of the interesting things about Staircase’s API is that its founders are useful not only for digital lenders, but also for government-sponsored companies such as Fannie Mae and Freddie Mac, employment verification services, and a wide range of entities such as first-generation mortgage technology. That’s what I’m claiming. Providers such as Erie May and Black Knight, mortgage insurance companies, retail banks, wholesale banks.

That is also attractive to Bessemer.

“In the last few years, there have been some great new products that have allowed the mortgage industry to start offering more digital experiences to end users, but like Staircase, they’re all tied together and both innovative digital first. There is no real platform to work with. With legacy providers to automate more processes and leverage the cloud in the same way that many other segments of consumer finance services have already been doing for quite some time. Similarly, “Birnbaum told TechCrunch.

In the future, Staircase will use some of the new capital for recruitment so that it can continue to develop its products. Of the 50 employees, more than 40 are engineers.

“this is It’s all about product development, maturity, and entering the market to make sure technology helps borrowers, “says Kalamchi.

Staircase steps up effort to build the ‘AWS Marketplace for the mortgage industry’ with fresh $18M – TechCrunch Source link Staircase steps up effort to build the ‘AWS Marketplace for the mortgage industry’ with fresh $18M – TechCrunch

The post Staircase steps up effort to build the ‘AWS Marketplace for the mortgage industry’ with fresh $18M – TechCrunch appeared first on California News Times.

Source link


Please enter your comment!
Please enter your name here

Share post:


More like this

Elon Musk’s son meets Pope Francis: Photo-Hollywood Life

Father’s Day, Elon Musk ...

Daughter steals mother’s car, sells it for $500 – Nashville-Davidson, Tennessee

Nashville-Davidson, Tennessee 2022-07-02 15:45:12 – Memphis, TennesseeWREG) – A...

Deputies say only some fireworks are legal in certain areas – Colorado Springs, Colorado

Colorado Springs, Colorado 2022-07-02 15:22:05 – El Paso County,...

Red-Hot Propane Power Stock Gains Summer Momentum

The sun is shining, and it’s time to get...