Mortgage startup NFTYDoor plans to launch a home equity platform, promising borrowers “a one-minute online application and funding in as little as three days.”
It’s entrepreneur Mark Schacknies’s first business venture after leaving the real estate vendor Remine, which was sold in October 2021 following allegations of unprofessional conduct by Schacknies and other executives.
He’s entering a bright space: home equity products have become more popular given the surging value of homes used as collateral. According to Black Knight, at the end of the second quarter of 2022, the average U.S. homeowner had $216,900 in tappable equity, up 5% from the first quarter and 25% year over year.
NFTYDoor says traditional home equity lenders take 30 to 90 days to fund loans due to their manual underwriting. Meanwhile, the company records transactions on the blockchain via NFTs (non-fungible tokens), which allows the lender to streamline operations.
“Our mission is to help homeowners unlock their home equity to better manage their finances – whether it’s for home renovations, paying for tuition, debt consolidation, or other events to support your family and life’s great adventures,” Schacknies said in a social media post.
The Virginia-based mortgage lender provides $25,000 to $250,000 in home equity with a 25-year fixed-rate term. Borrowers can apply for up to three loans, subject to a limit of $750,000 per borrower. According to its website, the startup offers fixed rates starting at 7.99%.
The NFTYDoor home equity product is available in Virginia, Maryland, and D.C. The company is also licensed in Illinois and Florida and has plans to go nationwide in its first year of operations.
“Our platform is a plug-and-play home equity solution for lenders. Our eNotes are stored in the blockchain, unlocking next level efficiency in capital markets,” Jonathan Spinetto, COO and co-founder of NFTYDoor, said in a statement.
Like Schacknies, Spinetto was among former real estate professionals who founded Remine in November 2015 under the name “Real Deal.” In July 2020, Inman reported on allegations of unprofessional conduct on behalf of Remine’s executives, which former employees said contributed to poor company culture.
In October 2021, the company was sold to a joint venture formed by four of the nation’s largest MLSs (the Austin Board of Realtors’ ACTRIS MLS, First MLS in Atlanta, Heartland MLS in Kansas City and Miami Realtors’ MLS). Schacknies stepped down.
Since the acquisition, three Remine shareholders filed a lawsuit against the company, demanding their shares be appraised. Also, Bright MLS, the nation’s second-largest MLS, announced it had not renewed its agreement with Remine due to low adoption and the availability of other tools with similar features.
The post Startup NFTYDoor launches home equity platform with one-minute application appeared first on HousingWire.