Real Estate

Compass Is Launching Its Own Mortgage Company, OriginPoint

OriginPoint will provide origination services to consumers in select Compass markets by the end of 2021, marking the brokerage’s latest move toward an end-to-end transaction.

Compass has placed the latest piece in its profitability puzzle with the launch of OriginPoint, a new mortgage origination company created in conjunction with retail mortgage giant Guaranteed Rate.

Robert Reffkin

“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,” Compass Founder, Chairman and CEO Robert Reffkin said in a statement on Tuesday. “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,” he added.

OriginPoint is in the beginning stages of its launch, with the integration between Guaranteed Rate’s digital mortgage platform and Compass’ cloud-based software in the works. OriginPoint has yet to gain mortgage licensure in any state; however, a Compass spokesperson told Inman the new venture will launch before the end of 2021 in “select markets.”

Once launched, OriginPoint will serve homebuyers and homesellers in every market Compass serves and they’re licensed in, regardless of their agent’s affiliation.

In addition to creating a more efficient experience for consumers, Compass and Guaranteed Rate said the venture will improve the mortgage experience for agents as well. “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,” they explained.

Vincent Ciardelli

Guaranteed Rate Founder and CEO Victor Ciardelli said partnering with Compass to create OriginPoint “is really exciting,” as Guaranteed Rate is already the number one non-bank lender for Compass agents whose clients often need the jumbo loans they specialize in offering.

Guaranteed Rate has a proven track of success, as they’ve also helped other real estate brands including @properties and Realogy launch their own mortgage services.

“Partnering with Compass and Robert Reffkin to rapidly build a best-in-class, tech-focused mortgage company is really exciting,” Ciardelli said in a prepared statement. “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.”

OriginPoint is a key part of Compass’ profitability strategy, which includes launching adjacent mortgage, title and escrow services. In the brokerage’s first-quarter earnings call in May, Reffkin said he expected a hearty return from his investment in these services as Compass strives to create the industry’s best end-to-end platform.

“At Compass, our strategy is to replace today’s overly complex, paper-driven antiquated workflow with a seamless, all-digital end-to-end platform that empowers every real estate agent to provide exceptional experiences to their buyers and sellers,” he said. “This will take time and continued investment, but the opportunity is enormous.”

In an emailed statement to Inman, a Compass spokesperson estimated its current adjacent services have an $85 billion market value. The spokesperson declined to share any further details about OriginPoint’s projected revenue or performance, as they will be available during Compass’ Q2 earnings call.

“This new venture gives Compass the opportunity to bring its agent-centric approach and end-to-end technology platform to the mortgage business, with the aim of driving efficiencies throughout this critical component of the real estate transaction,” they said.

Email Marian McPherson

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