Mortgage fintech Maxwell hopes its new product can turn more businesses into home lenders by eliminating some of the hurdles in the startup process.
The Denver-based business-to-business loan services provider announced the introduction of Maxwell Private Label Origination, a suite of its tools and support, designed to provide the components needed for real estate or financial services companies to add mortgage lending to their product lines. While bringing new entries into the home finance space, Maxwell also expects the offering to provide an easy path for existing clients who wish to add products or move into different channels.
“The goal is for us to manage as much of running a mortgage operation as we can with a very light lift from them overall,” said John Paasonen, cofounder and CEO of Maxwell, in an interview with National Mortgage News.
The company currently serves over 300 small to midsize
As a white-label solution, the lender would maintain control over customer-facing relationships, with Maxwell solely responsible for post-sales activities, including closing, funding and shipping to secondary markets. Paasonen also said Maxwell would oversee regulatory details for new lenders, including assistance to set businesses up as an entity and meet licensing requirements.
“Our goal is to offer everything in a compliant way to our customers, so they're able to deliver launch-to-market. We have our own legal and compliance team that will be there, supporting them and helping them with the filings,” Paasonen said.
While Maxwell’s products have been available a la carte, the pivot toward an all-inclusive package represents a new strategy as lenders seek ways to increase profits while confronting
A streamlined outsourced solution would ease entry into mortgage banking without adding excessive overhead, he said. And, for existing lenders, Maxwell’s services opens the door for them to quickly roll out HELOCs and a variety of other potential products, as well as develop new lending channels.
With interest rates expected to remain elevated in 2022, diminishing incentives for refinances, lenders are also turning their focus to higher-margin channels and products. Several lenders this spring announced their intentions to offer more
“That's probably the most interesting segment we have today,” Paasonen said.
He sees those clients driving initial interest in the private-label product, with some trying to introduce wholesale and direct-to-consumer units in the near future.
“We're able to provide that flexibility and scalability as they launch that and grow it,” Paasonen said.
The product introduction is the latest business move from Maxwell following a Series B funding round in the fourth quarter of 2021. Late last year the company appointed a new