This allows both homebuyers and those looking to refinance their mortgages to secure personalized loan rates and get prequalified via their smartphone, tablet or online. This is the next step in the SoFi mortgage experience, continuing to get the entire mortgage process online.
Mike Cagney, CEO of SoFi, commented:
"The mortgage experience leaves much to be desired. You enter a lot of information, and instead of seeing rates you get phone calls. Lots of phone calls. Usually during dinner. That's not the way modern homebuyers, particularly Millennials, want to shop for a loan. We've created a fast, simple and flexible online way to get personalized quotes in real time, along with access to a SoFi mortgage specialist if you need more help. This is the start of a fundamental shift in how people will shop for loans."
According to research from the National Association of Realtors, Millennials make up 31% of home buyers, the largest segment of the marketplace. 94% of Millennial home buyers begin their search by looking online, and more than half of Millennials and Generation X start their home buying search by searching on their mobile device.
"Traditionally, mortgage lending was a draconian process where banks treat you like a money launderer until you prove otherwise. I'm proud that we've turned this experience on its head. We believe that borrowers who have good jobs, strong credit and cash flow shouldn't be denied a home because they don't have a twenty percent down payment."
SoFi launched its mortgage product in October last year. Since then SoFi has more than tripled its mortgage presence to 20 states and the District of Columbia. The States it is currently operating in include Alabama, California, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, North Dakota, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Texas, Virginia, Washington, Wisconsin and Wyoming; more states will be added soon.
Bloomberg reported that SoFi is forecasting more than $4 billion of originations this year, compared with $1.75 billion in cumulative lending since its conception in 2011. Mike Cagney predicted that their new mortgage tool will produce another $1 billion.
SoFi is focused on providing a complete service for Millennials. The platform started out just providing student loan refinancing, but has now branched out to cater for many of the financial needs of early stage professionals. There have recently been more whispers about the SoFi IPO saying that the platform is looking to raise $500 million via the IPO later this year. This new product launch lines up the platform well for a float later this year.