Compass Moves Mortgage In-House With OriginPoint

With concerns about the real estate disruptor’s profitability likely putting a lead foot on the pedal, Compass announced that the brokerage has engaged Guaranteed Rate to found OriginPoint, a new mortgage origination company that will roll out to Compass offices soon.

It’s been no secret that Compass, launched as a residential real estate brokerage in 2015, has struggled to become profitable. The company, which merges residential real estate sales with AI and a data-driven approach, has received copious cash from several funds — including the well-known (and sometimes controversial) SoftBank — but has yet to find itself in the black.

This, however, could help move Compass in a new direction. Hopefully one that makes a profit.

Compass hit the Dallas scene with a bang in 2018 when it merged with Christy Berry and Jonathan Rosen’s Collective Residential. Since then it has only expanded and attracted top-producing talent with big cash bonuses and perks. Adding a lending arm only makes sense.

“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,” Reffkin added. “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.”

In fact, several regionally renowned brokerages have in-house services. It’s also a trend that several disruptors — OpenDoor and Zillow included — have adopted.

But what makes OriginPoint different? According to the press release:

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.

“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 $60 billion in loan volume since the start of 2021. “With interest rates creeping up, limited housing supply and refis slowing down, right now couldn’t be a more perfect time to hire the best of the best of the top loan officers and sales leaders throughout the country.”

The founding of OriginPoint comes after another record-setting year for Guaranteed Rate, whose companies funded more than $73 billion of total loan volume in 2020, and is on pace to have a record year for 2021.

Compass is currently home to over 22,000 agents, serving hundreds of the top cities in the country. Last year these agents transacted approximately $152 billion in residential real estate and completed 66% more transactions than they did the year before, making Compass the largest independent real estate brokerage in the country.

There’s no word on when and where the roll-out of OriginPoint will start, but we’re sure Dallas isn’t too far down the list.