Easy Bags $35 Mn To Offer Mortgage-Backed Loans
Easy was founded in 2017. It is a home finance company that offers loans which are paperless mortgage backed and also offers other financial services to its home buyers. The fintech startup has raised $35 million in funding to offer mortgage-backed loans to home buyers. Here are the key details about the development(Easy bags $35 Mn):
Easy Bags $35 Mn
Easy bags $35 million in funding to expand its mortgage lending operations. This will help the startup to provide more mortgage-backed loans to authentic home buyers. The startup aims to make the home buying process more accessible. Some key aspects of their approach likely include:
- Use the latest technology to streamline the process of mortgage application and its approval.
- It can offer competitive interest rates.
- Easy can use mortgage-backed securities (MBS) to fund their loan offerings
Mortgage-Backed Securities
Easy bags $35 Mn. The model of the startup involves mortgage-backed securities. Some important points about MBS are:
- They allow lenders to sell mortgages to investors so that they can have more capital to make more loans.
- MBS (mortgage backed securities) issued by agencies like Fannie Mae and Freddie Mac are low risk, because they are government backed.
- MBS (mortgage-backed securities) provide steady cash flow to investors through mortgage payments. They may provide greater returns than other types of fixed income investments.
Potential Benefits for Home Buyers
Easy’s mortgage-backed loan offerings could provide advantages for home buyers such as:
- It will have an easier qualification process as compared to traditional lenders
- Buyers can have access to mortgage financing for those who may struggle to qualify elsewhere
- It provides competitive rates and terms to make home ownership more affordable
Industry Context
The funding comes at a time when the mortgage and housing markets have evolved significantly:
- Mortgages became more accessible to average Americans starting in the 1930s, leading to increased home ownership rates.
- Government-backed entities like Fannie Mae and Freddie Mac have played a major role in expanding the mortgage market.
- The 2008 financial crisis led to stricter lending regulations, but new fintech lenders are now entering the space.
While Easy bags $35 Mn, the exact loan terms and qualifications are not provided, their tech-enabled approach and use of mortgage-backed securities aim to make home loans more accessible to buyers in today’s market.
Citations:
[1] The Mortgage Reports
[2] Investopedia
[3] Lending Tree
[4] Goluminate
[5] Mortgage Financial Crisis
[6] INC 42
[7] NAtwest
