Mortgage servicers collect a monumental $88 billion of payments from 53 million US households every month.¹ These servicers manage the most valuable asset for many Americans, their home equity, for 7 years on average (before the loan is refinanced, paid off, sold, or foreclosed). And yet 70% of homeowners don’t trust their servicer and the customer satisfaction scores for this industry are among the lowest across all categories.² Alex Johnson, author of FintechTakes, puts it well, “[mortgage servicing] is the biggest missed opportunity in financial services.”³
It’s no surprise this relationship has suffered. Servicers are a byproduct of a fragmented, complex mortgage value chain designed to create liquidity and bring the cost of mortgages down. They are subject to intense regulatory, consumer protection, and compliance scrutiny while managing millions of accounts on antiquated technology ledgers that optimize for little beyond payment processing and compliance with federal, state, and government-sponsored-entity requirements. We’re left with trillions of dollars flowing through the mortgage industry — the most consequential investment for Americans — and an intermediary that can offer limited value beyond payment collection.
Enter Haven. The Haven team saw changes in the mortgage industry wedging open a lane for much needed transformation. First, servicers have transitioned to modern data infrastructures, unlocking data from siloes; second, OAuth single-sign-on became standard enabling other platforms to use existing logins to access homeowners/consumers; and third, the rising rate regime has put pressure on mortgage originators who are starting to turn to servicing rates to diversify revenue sources.
Haven elevates mortgage servicers from mere back office payment processors to trusted financial advisors that can deliver ongoing, personalized value to their homeowners. Haven provides servicers with a portal to engage with and understand their homeowners’ needs and provide them access to additional products like home, auto, and life insurance, home renovation and solar upgrades, and home equity lending. This education and access helps homeowners maximize their financial wellbeing while also providing new revenue streams to servicers that are increasingly important as mortgage origination volumes drop to 25-year lows.
We’ve been so impressed by the Haven team’s ability to apply their experiences building fintechs like Credit Karma and Plaid to an industry that has been very difficult to penetrate. The team has won the trust of some of the biggest players, and in less than 24 months, Haven has gone live with 800,000 homeowners and has integrations with 6 of the top 50 servicers in the U.S.⁴
One of the driving principles of 1Sharpe Ventures is to reimagine financial systems underpinning the way we access and experience real estate, and we are excited to partner with a team that shares that mission. Already, we have seen Haven act as a portal through which other innovative financial products and services can distribute, and we believe Haven will become a powerful node for the growing proptech and fintech industry. We are just getting started!
If you are interested in exploring partnerships and distribution with Haven, or opportunities to join the team, check out Haven Servicing for more info!
¹ Haven management estimates.
² “Primary Loan Servicers Have a Trust Problem with their Customers, J.D. Power Finds.” J.D. Power. 01 August 2019.
³ Johnson, Alex. “Reimagining Mortgage Servicing.” FinTech Takes. 10 August 2021.
⁴ Results reported by Haven management.
Unless otherwise indicated, the views expressed in this post are those of 1Sharpe Ventures (“1Sharpe”), and are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision. Information used in this presentation was obtained from numerous sources including but not limited to Haven. Certain of these companies are portfolio companies of 1Sharpe. 1Sharpe does not make any representations or warranties as to the accuracy of the information obtained from these sources.
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