Compass and Guaranteed Rate Join Forces to Announce the Launch of OriginPoint
On July 13, 2021, Compass (NYSE: COMP) and Guaranteed Rate announced the formation of OriginPoint, a new mortgage origination company. This venture aims to leverage Compass' technology and Guaranteed Rate's digital capabilities, enhancing the mortgage process for clients across various brokerages. With a combined expertise in the jumbo mortgage market, OriginPoint is expected to improve efficiencies and client satisfaction. The partnership is particularly timely as both companies report strong loan volumes, setting the stage for significant growth in the mortgage origination sector.
- Formation of OriginPoint, expanding Compass' offerings in mortgage origination.
- Combines Compass' real estate technology with Guaranteed Rate's digital mortgage capabilities.
- Expectations for improved efficiency and transparency in home buying processes.
- Opportunity to capture a multi-billion-dollar market in mortgage origination.
- Potential risks related to market conditions and economic factors affecting mortgage origination.
- Dependence on the successful integration of digital platforms may pose operational challenges.
NEW YORK and CHICAGO, July 13, 2021 /PRNewswire/ -- Compass, Inc. (NYSE: COMP), the nation's largest independent brokerage and a leading real estate technology company, and Guaranteed Rate, Inc. ("Guaranteed Rate"), one of the nation's five largest retail mortgage companies, today announced they have entered into a definitive agreement to form OriginPoint, a new mortgage origination company.
Compass and Guaranteed Rate are natural partners–Guaranteed Rate is the number one non-bank lender for Compass agents, and both companies have deep expertise in the jumbo space. Once Guaranteed Rate's digital mortgage platform is fully integrated into Compass' suite of AI-driven cloud-based software, OriginPoint will drive efficiencies throughout every step of the mortgage process to bring a faster, more seamless and completely transparent home buying and selling experience to loan officers, agents and clients.
OriginPoint will originate mortgages for clients of Compass' real estate brokerage, as well as any other brokerage, making loans available to a broad consumer audience. The new venture will combine the power of Compass' end-to-end technology platform with Guaranteed Rate's superior digital mortgage capabilities to quickly drive growth. OriginPoint will directly unite agents with loan officers to create a cohesive team that will reduce consumer uncertainty in the homebuying process and ultimately lead to much greater customer success and satisfaction.
"Partnering with Compass and Robert Reffkin to rapidly build a best-in-class, tech-focused mortgage company is really exciting," said Guaranteed Rate Founder and Chief Executive Officer, Victor Ciardelli, whose companies collectively are having their best year ever, closing more than
The mortgage origination industry presents a multi-billion-dollar opportunity for Compass to bring its agent-centric approach and end-to-end technology platform to this critical component of the real estate transaction.
"Over the past eight years Compass has been laser-focused on building a company that empowers top agents across the country, and with OriginPoint we're creating a direct connection between these agents and the top loan officers in the industry," said Robert Reffkin, Founder, Chairman and CEO of Compass. "Buying a home is the most emotionally and financially significant decision of most people's lives and the role of the agent is to make the process as stress-free as possible. OriginPoint brings together two digital-first companies to deliver a mortgage product that provides a seamless and transparent experience for agents and their clients, which ultimately leads to a simpler real estate transaction for everyone involved."
OriginPoint will be available to all consumers in every market where Compass operates and OriginPoint is licensed regardless of the brokerage they choose to work with. The new venture intends to modernize the real estate transaction process through increased speed and efficiency for loan originators, agents and their clients. Loan originators who join OriginPoint will be able to leverage the growth-driving innovations developed by Guaranteed Rate, including its proprietary operational flow, unique products and pricing structure, a true digital mindset that integrates advancements in AI, and an industry-leading MarTech program designed to drive success.
The creation of OriginPoint comes amidst another record-setting year for Guaranteed Rate, whose companies funded more than
For more information, visit: originpoint.com.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Compass' current perspective on existing trends and information as of the date of this release. Statements containing words such as "could," "believe," "expect," "intend," "will," or similar expressions constitute forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from Compass' current expectations depending upon a number of factors affecting Compass' business, including, but not limited to, expansion into new markets, prevailing market conditions, the impact of general economic, industry or political conditions in the United States or internationally, and risks related to the impact of the COVID-19 pandemic. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For information about other potential factors that could affect Compass' business and financial results, please review the "Risk Factors" described in Compass' Form 10-Q for the quarter ended March 31, 2021 filed with the Securities and Exchange Commission (the "SEC") on May 13, 2021, and Compass' other filings with the SEC. Except as may be required by law, Compass undertakes no obligation, and does not intend, to update these forward-looking statements after the date of this release.
About Compass
Founded in 2012, Compass is a leading real estate technology company, providing an end-to-end platform that empowers its residential real estate agents to deliver exceptional service to seller and buyer clients. The platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionality, all custom-built for the real estate industry. Compass agents utilize the platform to grow their business, save time and manage their business more effectively. For more information on how Compass empowers real estate agents, one of the largest groups of small business owners in the country, please visit www.compass.com.
About Guaranteed Rate Companies
Guaranteed Rate is one of the largest retail mortgage lenders in the United States. Headquartered in Chicago, the Guaranteed Rate Companies have more than 10,000 employees in over 850 branches across the U.S., serving all 50 states and Washington, D.C. Since its founding in 2000, Guaranteed Rate Companies have helped hundreds of thousands of homeowners with home purchase loans and refinances and funded more than
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SOURCE Compass
FAQ
What is OriginPoint and who formed it?
When was the agreement to form OriginPoint announced?
How will OriginPoint benefit Compass agents?
What market opportunity does OriginPoint aim to capture?
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