Credit Karma, the best known service for providing free credit score control and other financial advice (primarily to millennials), is getting into the mortgage business. The company announced today that it has acquired Approved, a mortgage platform that brings modern technology to a process that even today often involves sending and receiving documents by fax. The companies did not disclose the financial details of the transaction.
At first glance, this may seem like a strange acquisition, given that Approved is primarily a service for banks and mortgage intermediaries. But it also makes sense for Credit Karma to enter the mortgage business.
We have extended seen seen us moving from credit cards as to form to help members with that part of his life to first personal loans for car loans of automatic meaning, auto insurance, "he said." Today in day, we are really talking more publicly about the mortgage. The mortgage is for many of our members the most important financial decision they will make. "
Nor is it a secret that the largest user base of Credit Karma is millennials, as they get older and begin to get to the point When they consider buying a house (assuming they are in a financial position to do so), the company obviously wants to keep those users engaged on its platform and offer them more services.
Singhal also noted that 80 percent of the members of Credit Karma are active in the service before getting a new mortgage, and Credit Karma obviously knows all this because it is able to collect a lot of very detailed financial data about its users.
As noted by Singhal, Credit Karma has been working on deepening the mortgage business for approximately 18 months. "The acquisition is just the continuous effort of saying: & # 39; m iren, we take our scale seriously and we are the trusted destination for our members when it comes to helping them with their mortgage. "
Credit Karma already offers some mortgage brokerage services, and today's acquisition aims to help accelerate this process with the help of Approved technology. "What he approved spent a lot of time working with lenders to help them automate and make them more efficient," Singhal explained. A more efficient process, Singhal hopes, means that lenders can reduce rates and save money for Credit Karma members.
Approved CEO Andy Taylor and CTO Navtej Sadhal are former students of Redfin, so they know this business well. Taylor told me he believes that Credit Karma will allow him to scale his service beyond what an independent company could have done. Taylor tells me that he sees Approved's mission as helping consumers navigate the often tedious and painful world of obtaining a mortgage. "M oving to Credit Karma is going to immediately da us the type of resources and immediate scale to continue to unit that mission- driven  work "he said. "W e can reach significantly more people than we could could otherwise W ] e can spend minus time focusing on on the detail of building the lender system and more time focusing on bringing transparency to the transaction and have a better loan application process. "