Exchange Now Helps Financial Advisors Find Mortgages For Their Clients
Ally Home, Better and Guaranteed Rate are the first residential mortgage lenders to join Envestnet Credit Exchange, an online network that allows wealth managers to view pre-qualified loan options available to their clients.
Financial advisers should be experts not only in investing but also in borrowing, and real estate financing is probably their clients’ greatest need, according to the backers of the Exchange.
With the addition of mortgages and a wider selection of personal loans, the Investment Credit Exchange now offers title-backed, unsecured and real estate loans from $ 10,000 to $ 25 million and more.
“To be competitive and to be successful in the wealth management business, advisers need to consider both sides of their clients’ balance sheets,” Investnet’s Andrew Stavaridis said in a statement. “Helping clients build equity means managing credit as strategically as investing. “
The exchange, which started offering personal loans from LightStream last year, added Upgrade Inc. as an unsecured loan partner. Envestment said it has also partnered with SweetPay’s Access Financing, a digital loan application platform, “to connect the Exchange to multiple unsecured lending partners” and return a wider selection of potential loans.
Launched in 2019, the Investment Credit Exchange is powered by the Advisor Credit Exchange (ACx), which provides lending solutions to advisors and their clients through the Envestnet platform through the Investnet subsidiary, Envestnet Financial Technologies. Envestnet Inc. holds an interest in Advisor Credit Exchange, as well as seats on the board of directors of the company.
Envestment says its wealth management platform is used by more than 106,000 advisors at more than 5,200 companies, including 17 of the 20 largest US banks, 47 of the 50 largest wealth management and brokerage firms, and hundreds of registered investment advisers and financial technology companies.
With interest rates at or near historic lows during the pandemic, mortgage lenders have seen their refinancing business explode. If rates rise, as expected, much of this activity will dry up as borrowers lose the incentive to refinance. In their latest monthly forecast, economists at Fannie Mae said they expected mortgage refinancing volume to fall by almost half next year, to $ 1.1 trillion.
Guaranteed Rate, which formed a joint venture with residential brokerage @properties last year, was the eighth largest provider of purchase mortgages in the country in 2020, according to preliminary data analyzed by iEmergent.
Better, which in May announced plans to go public through a PSPC merger, said it would look to expand its mortgage buying business through its real estate brokerage firm, Better Real. Estate LLC, which saves $ 2,000 on closing costs when home buyers finance a buy through Better Mortgage.
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