GPARENCY, a commercial mortgage brokerage, announced today its new solution “Match to Lender,” which gives commercial real estate (CRE) borrowers the ability to search by loan and property type to access lenders in their state free of charge, according to a press release.
The company, which says it is working to shift the legacy model from commission to membership-based, says that the software is a complete departure from legacy systems where mortgage brokers keep originator contacts “close to the vest, and use that opacity to justify steep, commission-based fees.”
For the next year, GPARENCY says that all borrowers will be able to use the algorithm to access all originators in their state, with only GPARENCY partner lenders displayed after June 30, 2022. It says that, following that date, those with memberships to its services will still be able to access the open source approach.
“We knew when we started GPARENCY, it would turn the CRE industry upside down, in the best possible sense. We’ve created a democratized approach to pricing based on set fees, instead of bloated and opaque pricing using a mortgage broker,” stated Ben Schweitzer, founder and Chief Product Officer at GPARENCY, who previously served at Freddie Mac.
“With a hawkish Fed, market volatility and rising interest rates, a sea change is occurring. We welcome lenders to take this opportunity to get on our platform, and see how many more deals they can originate with GPARENCY. We are the future of how CRE deals will be done going forward,” Schweitzer said in the release.
In addition to this new service, GPARENCY currently offers borrowers the ability to close their own mortgage deals for “no more than $16,000, regardless of deal-size.” It says it also gives lending partners access to qualified deal flow for $5,000 per year.
With all the benefits of online lending, it is easy to wonder why there are still lenders today that are not investing in technology. The truth is that many lenders are held back by their legacy providers.
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The company also recently announced that it will allow CRE borrowers to market their mortgages to its community of over 3,000 banks and lenders for free and without commitment, according to a release last week.
“Both lenders and borrowers are noticing a shift in consumer sentiment. People are seeking a subscription-based experience, as evidenced in sectors such as personal finance, medicine, retail, media and more. We are excited to see the swell of migration to the GPARENCY community continue, as our ecosystem continues to grow and benefit from this shift in peoples’ behavior,” Schweitzer added.
GPARENCY launched in November of last year and has currently raised $14.8 million in funding. The company stated that venture-backed capital came from over 125 real estate professionals and strategic partners, including Customers Bank, and says its seed round was the largest in the commercial space to date at the time of that release.
In other recent proptech news, online mortgage marketplace Morty launched two new loan types and expanded its coverage to nine new states. Nuveen Real Estate also launched a new investing sector and states plans to hold over $15 billion in impact real estate assets by 2026.