Morty Raises Additional $ 8.5 Million To Turn Mortgage Loan Process Into A Few Clicks
For first-time home buyers, navigating the mortgage process is a complex and opaque process. Morty created the online education and finance tool to automate steps in the mortgage process, providing resources such as instant checks for pre-approvals and real-time loan pricing with just a few clicks. The online mortgage broker, launched in 2016, is licensed to operate in thirty-four states and is completely free for home buyers.
AlleyWatch spoke with the COO and the co-founder Nora Apsel to discuss how Morty is pioneering the digitization of the mortgage industry, the company’s future growth plans, and the latest funding round, bringing his total funding to $ 11.5 million in three rounds.
Who were your investors and how much did you raise?
We raised $ 8.5 million in Series A funding led by Prudence Holdings, with significant investments of Thrive Capital and Lerer Hippeau.
Tell us about the product or service that Morty offers.
Morty started out as a one-stop transaction product that allowed buyers to complete a digitized mortgage application. With our latest product launch, we’ve released a new platform with three distinct stages that better match the buyer’s journey and their goals along the way, from confidence in a strong, verified pre-approval to lockdown. of the perfect loan based on the needs of the buyer. Some of the features that allow us to accomplish this include:
- Clear and simple training on the financial attributes that help you qualify for a mortgage
- The Home Financing Score that Minimizes Perceived Risks with Your Mortgage Eligibility
- Instant checks to speed pre-approval to close, powered by integrations with industry leaders
- Pre-approval letter tailored to a specific property
- Transparent, dynamic and real-time loan pricing
What inspired you to start Morty?
Morty – a play on the word “mortgage” – was founded by four mortgage and tech entrepreneurs aged 30 and over. Industry veteran Brian Faux (CEO), former senior advisor to the US Department of Housing, has teamed up with Sarah Thomas (co-founder), former Treasury Department policy adviser, Adam Rothblatt (CTO), former algorithmic trader at Goldman Sachs, and myself (COO), an engineer with a background in nonprofits and social impact startups. Our diverse experiences in mortgage lending, finance and technology have combined to form a common vision to make buying and acquiring a mortgage easier and more transparent.
How is Morty different?
Morty makes buying a home easy. We empower first-time homebuyers to confidently secure and finance their home purchase on an easy-to-use platform. We help buyers navigate the complicated process of finding and obtaining financing to buy a home. We work with our buyers every step of the way of the home buying process, from pre-approval to closing. Morty works with a variety of lenders, each offering different loans with different requirements and different closing costs. Instead of comparing lenders and loan options alone, Morty’s borrowers benefit from our experience and expertise.
What is Morty’s target market and how big is it?
We reach over 75% of all first-time home buyers who are considering or learning more about buying their first home and this market is growing steadily.
Who do you see as your main competitors?
Our biggest competitor is really the status quo and the idea that you have to go to a physical bank to get a mortgage. For us, any business that promotes the fact that you can get a mortgage online efficiently is helping the industry move forward.
What is your business model?
Morty earns his money from lenders who pay fees on closing a loan.
It can be intense, you are able to meet a lot of people, and you get feedback on your business and your pitch in no time. There is a ton you can learn !.
What are the biggest challenges you have faced in raising capital?
Explain why the mortgage industry hasn’t changed over the past 20 years and how we’re making this process easier and more efficient for homebuyers.
What factors about your business caused your investors to issue the check?
Three things: the team, the market, and the product, and understanding what those three things can do with the money behind them.
What advice can you offer New York businesses that don’t have a new injection of capital in the bank?
To concentrate! It is more useful to do one thing well than to do several things halfway.
Where do you see the company evolving in the short term?
Our goal for Morty is to generate more physical demand and strategic relationships in specific markets. We want to become the preferred mortgage partner for real estate development, brokers, developers and other market stakeholders to help propel the future of real estate transactions for the first time in all 50 states. At the same time, we want to make sure we expand our reach and engage with homebuyers earlier in the process.
Our goal for Morty is to generate more physical demand and strategic relationships in specific markets. We want to become the preferred mortgage partner for real estate development, brokers, developers and other market stakeholders to help propel the future of real estate transactions for the first time in all 50 states.
What is your favorite restaurant in town?
Calexico food truck.