Mortgages are one of the largest financial services products sold in the United States. Each year, trillions of dollars in new mortgage debt is issued to consumers.
As of Q3 '23 the cost to originate a new mortgage loan was ~$11,600 or ~330 basis points of an assumed national average loan size of ~$350,000.
Right now, the industry average compensation for originating a mortgage loan is ~300 basis points, so many new loans are actually unprofitable for lenders.
Furthermore, consumers ultimately pay for the rising costs of origination, so the current state of mortgage origination is that originators issue unprofitable loans and consumers pay higher prices.
We think that's bad for everybody, and we're trying to help change it; selling money more profitably means putting money back into the pockets of consumers, and the originators helping them access new capital.