INSUBCONTINENT EXCLUSIVE:
Credit Karma, the service best known for providing free credit score monitoring and other financial advice(mostly to millennials), is
getting into the mortgage business
The company today announced that it has acquired Approved, a mortgage platform that brings modern technology to a process that even today
often still involves faxing documents back and forth
The companies did not disclose the financial details of the transaction.At first glance, this may seem like a bit of an odd acquisition,
given that Approved is mostly a service for banks and mortgage brokers
But it also makes perfect sense for Credit Karma to get into the mortgage business.
Indeed, Credit Karma Chief Product Officer Nikhyl
Singhal told me that he sees this as the natural next step in the company evolution
&Aswe&veexpanded, you&veseenusmovefromcreditcardsasawaytohelpmemberswiththatpartoftheir life to first personal loans to auto — meaning
auto loans, auto insurance,& he said
&Today, we&re really talking more publicly about mortgage
Mortgage being for many of our members the most important financial decision they&ll make.&It also no secret that Credit Karma largest user
As they get older and start getting to the point where they consider buying a home (assuming they are in the financial position to do so),
the company obviously wants to keep those users engaged on their platform and offer them more services.Singhal also stressed that 80 percent
of Credit Karma members are active on the service before they get a new mortgage — and Credit Karmaobviously knows all of this because it
is able to collecta lot of very detailed financial data about its users.As Singhal noted, Credit Karma has been working on getting deeper
into the mortgage business for about 18 months
&The acquisition is just the continuing effort of saying, ‘look, we&re serious about taking our scale and being that trusted destination
for our members as it relates to helping them with their mortgage.'&Credit Karma already offers some mortgage brokerage services,and today
acquisition is meant to help speed up this process with the help of Approved technology
&What approved has spent a lot of time doing is working with lenders to help them automate and make them more efficient,& Singhal explained
A more efficient process, Singhal expects, means the lenders can reduce rates and save Credit Karma members money.ApprovedCEO Andy Taylor
and CTO Navtej Sadhal are both Redfin alums, so they know this business well
Taylor told me that he believes that Credit Karma will allow him to scale his service up beyond what a stand-alone company could&ve done
Taylor tells me that he sees Approved mission as helping consumers navigate the often tedious and painful world of getting a mortgage
&MovingtoCreditKarmaisgoingtoimmediatelygiveusthesortofresourcesandimmediatescaletocontinuetodrivethatmission-drivenwork,& he said
&Wecanreachsignificantlymorepeoplethanwecouldotherwise.Wecanspendlesstimefocusinginontheminutia of building the lender system and more time
focusing on bringing transparency to the transaction and having a better loan application process.&Zillow gets into the mortgage business,
acquires Mortgage Lenders of America
