Philadelphia-based private equity firm LLR Partners announced on Tuesday its investment in Sales Boomerang and Mortgage Advisor, two fintechs focused on attracting and retaining mortgage borrowers and making loan originators more efficient. Both companies will retain their existing brands and teams.
The investment comes at a pivotal time for the mortgage industry, which has seen a record volume of refi give way to a market dominated by purchase loans. LLR Partners, which conducted a Investment of $26.5 million in eOriginal in 2016, said the two companies offer solutions that make a difference for lenders facing fierce competition and low margins in a buying environment.
“What stood out to us with these two companies was their really exciting growth and the very positive feedback from the overall market. All the lenders felt that they were getting a really high ROI from these solutions” , said Sam Ryder, principal at LLR Partners.
Sales Boomerang provides automated borrower insights, delivering real-time customer insights to lenders, who can then offer “the right loan to borrowers at the right time,” according to CEO Alex Kutsishin. This is especially important in the current environment, Kutsishin said, where borrowers need quick and flexible solutions as rates rise.
Mortgage Coach provides an interactive borrower education platform that allows loan officers to guide borrowers through a visual presentation of their loan options so that the LO becomes a trusted advisor, said the co-founder and CEO Dave Savage.
“Mortgage professionals are really well positioned to be captains of a consumer’s wealth management team,” Savage said. “There should be a relationship beyond the transaction. This vision is a big part of why we wanted to put gas on the fire with this investment. »
The two companies’ technology solutions are already tightly integrated, and the relationship between their leaders was a bonus for LLR Partners, Ryder said.
“The management teams already had a good relationship, they have similar visions for this space and the existing product integrations – all of those things together made this a great opportunity to invest in both companies,” Ryder said.
Forward-looking initiatives cited by LLR Partners include “support for a wider range of financial products and lending institutions”, and the three executives interviewed by HousingWire noted that their strategy goes beyond just mortgages. Kutsishin said the expanded products could include everything from adjustable rate mortgages to reverse loans, but also products such as credit cards, auto loans and personal loans.
“We’re building and already know we can deliver the best portfolio sharing acceleration program for banks and credit unions, using the same strategies we’ve used for mortgages,” Kutsishin said.