Maxwell, a digital mortgage platform designed for small and midsize lenders, announced today a new strategic partnership with digital closing platform Snapdocs, according to a press release shared with FinLedger.
The company says the partnership will provide eClose technology to lenders across the country as part of Maxwell’s Point of Sale, with the integration expected to accelerate the entire closing process, reduce loan costs and save time for lenders and borrowers.
Maxwell says that the new integrated solution is powered by machine learning and removes manual administrative tasks in the closing process, including document review and signature steps. It says this increases loan officers’ capacity to support more home buyers through the mortgage process.
The company says the integration is also built on a multi-party workflow engine, enabling all stakeholder activities to be coordinated with transparency.
“A simplified and streamlined eClose experience is critical for lenders to continue to gain efficiency, save costs, and improve their borrower experience. When seeking a like-minded partner to help deliver that experience to current and future lenders on Maxwell, Snapdocs was an easy choice,” said Maxwell CEO John Paasonen.
“Their focus on innovation and partnership approach to solving lender challenges aligns well with our own methodology in building mortgage solutions,” Paasonen said.
The partnership comes at a time when loan costs are reaching near-record highs, with data showing they cost $8,600 more than last year. Maxwell attributes these rising costs to increased competition, rising interest rates and reduced housing supply, and says that reducing inefficiencies and increasing loan officer capacity is necessary to combat these trends and ensure lender profitability.
“Digital closings have gone from a nice-to-have to a must-have for lenders,” stated Aaron King, founder and CEO of Snapdocs, in the release.
“On our mission to perfect all mortgage closings, partnering with an innovative leader like Maxwell will help even more lenders nationwide improve efficiency, secure valuable savings and meet next generation borrower demands for a seamless mortgage experience,” King said.
Maxwell recently raised $52.5 million Series B in October 2021, split between $28.5 million in equity and $24 million in debt, which vaulted the company to a $450 million valuation.
FinLedger spoke with CEO John Paasonen in early February about the company’s journey so far and plans moving forward. You can find that Q&A here.
In other recent proptech news, Blend Network raised a $156 million for its Origination-as-a-Service initiative. Notarize also hired its very first CFO, Kartik Ramachandran, following its recent $130 million Series D.