Better.com, the digital mortgage company formerly known as Better Mortgage, is on the move again, as the company announced Thursday that it is expanding into five new states.
Since launching three years ago, Better Mortgage has grown significantly. Last year, the company doubled its geographic footprint and originated $1.3 billion in mortgages, representing an increase of approximately 300% from 2017.
The company added 13 states to its footprint in 2018, and already added four new states earlier this year.
Now, the company is making its services available in Montana, New Mexico, Rhode Island, Nebraska, and Wyoming.
That expansion brings Better to 36 states, representing approximately 80% of the U.S. mortgage volume.
The expansion comes on the heels of several big moves for Better. Earlier this year, the company announced that American Express Ventures, the strategic investment group of American Express, led its $70 million Series C funding round.
But American Express isn’t the only big name among Better’s backers. In February, Citigroup invested in Better, and Goldman Sachs was one of the company’s earlier backers.
And just a few weeks ago, Better announced that Ally Financial was also making in investment in the company as part of a deal that will see Ally and Better partner to launch Ally’s digital mortgage platform.
Better’s platform works by moving the mortgage process completely online. Its customers are able to upload and eSign documents, have instant access to lending discounts and receive personalized mortgage recommendations.
According to the company, its “commission-free model” allows a customer to save an average of $3,500 in fees on their mortgage.
The company also said its technology allows borrowers to close loans 25% faster than the industry average (33.6 days compared to the industry average of 42 days) and enables the company’s loan officers to originate 45 loans per month compared to the industry standard of 3.8 loans per month.
In the last year, the fintech tripled its headcount to more than 600 people, and the company plans to continue growing.
“Buying a home is not only the biggest financial transaction most people take, but also one of the most cumbersome, stressful and antiquated. Mountains of paper being faxed all across the country containing sensitive consumer data is a thing of the past and we strive to make every point for the borrowers home-buying journey seamless, digital and convenient,” said Vishal Garg, CEO and founder of Better.com. “With our market expansion into several key states, we’re pleased we can now offer borrowers in 36 states home loans that are cheaper, quicker and commission-free.”
