There’s yet another mortgage disruptor in town, the latest goes by the name of “Morty.” Sounds like a play on the word mortgage…
They claim to offer the “modern, online mortgage.” Let’s find out more to see if they can change the mortgage landscape as we know it.
How Morty Works
You start by building a so-called “financial profile,” which includes things like your income, assets, employment, along with the subject property information.
The Morty platform apparently allows you to automatically link this information, and doing so means you should receive accurate quotes. Kind of reminds me of how Quicken’s Rocket Mortgage works.
The problem with the current setup is that standard quoting engines assume you’re telling the truth, or at least providing accurate details. Once all the paperwork comes in the quote might be higher, or entirely invalid depending on the differences.
Ideally, Morty is able to catch all the gotchas during this information gathering process so you can go into underwriting with confidence you’ll be approved.
I went ahead and filled out the form on the Morty website to get started and it asked a few basic questions, such as my name, e-mail address, transaction type, and property location.
Unfortunately, that’s as far as I got. Not sure if the site is completely live yet or if I entered a state where they don’t do business.
Morty Is a Mortgage Broker
Once your financial profile is complete, you’ll be able to compare loan options from a variety of different lenders. Yes, Morty is a mortgage broker located in New York City, so you’ve got multiple banks to choose from here.
Currently, they are working with 10 mortgage lenders in 10 markets across the United States, and plan to go national by the end of 2017.
Those 10 states seem to include Colorado, DC, Florida, Georgia, Maryland, New York, North Carolina, Oregon, Tennessee, and Virginia, per NMLS records.
Anyway, once you find an offer you like you’re able to proceed with the backing of Morty. They claim to stay with you through closing to ensure there aren’t any hiccups. And if there are, they’ll be around to get you through them.
Essentially, they aspire to be the mortgage broker for the modern age seeing that traditional brokers are generally one-man shops with limited technology.
As you can see from the chart above, they seem to think typical mortgage brokers lack transparent pricing and terms, while also working in the Stone Age. Or at least not with a modern online platform.
The question though, or perhaps the million-dollar question, is if they can uphold their pledge when working with third-party lenders that may still be stuck in the Dark Ages.
I suppose the inherent problem with being a mortgage broker is that you’re at the mercy of the banks and lenders you work with. If they drop the ball for whatever reason, it’s not the broker’s fault…but they still represent the borrower and have to bear the consequences.
An online mortgage banker actually has full control, whereas a broker has some control. It sounds like they are bringing the process up to speed for the digital age, but there might be some growing pains as the mortgage industry slowly marches toward this inevitability.
Read more: Clara wants to be your hipster mortgage lender.