Neo-lender approves first ‘15-minute’ mortgage

In partnership with Shore Financial, neo-lender Australian Mortgage Marketplace (AMM) has successfully settled its first home loan using blockchain technology, with the approval process taking under 15 minutes.

The lender partnered with Shore Financial in order to run a pilot program, which has seen the first loan application completed in under 15 minutes, with loan funds settled within 24 hours.

AMM provides white label prime home loans tailored to fit the financial situation of the applicant, which are funded by residential mortgage-backed securities (RMBS), superannuation funds and industry investment.

The neo-lender utilises its own digital mortgage platform, Intelligent Credit, which harnesses artificial intelligence technology to verify applicants’ information and provide customers with a verified home loan approval in less than 15 minutes. 

According to AMM, the use of Intelligent Credit negates the use of traditional banks’ conditional pre-approvals, which still require a full credit assessment and take, on average, 16 days to complete.

Furthermore, nine out of 10 traditional pre-approvals lead to an approved loan amount that varies from the pre-approval amount, according to AMM.

As such, AMM believes that its process not only saves customers valuable time, but also provides customers with confidence and certainty in the purchase of their home or investment property.

AMM has said it has already received commitments from brokerages and mortgage managers to distribute over $2.5 billion per annum in prime mortgages on completion of its pilot program.

The announcement comes after a shake-up of the fintech’s leadership team, which saw co-founder Kym Dalton take on the role of managing director.

Mr Dalton commented on the inaugural loan: “We have received our first loan application and have settled our first mortgage. Funding the first mortgage on our own developed platform is a monumental achievement for the Australian Mortgage team. 

“It’s not just about funding a mortgage, it’s about proving that our best of class system is ready,” he said.

Mr Dalton continued: “The company is taking a responsible approach to ramping up its volumes. Even so, news of the commencement of our lending operations has generated significant interest from brokers and mortgage managers.

[Related: AMM reshuffles leadership team]

Neo-lender approves first ‘15-minute’ mortgage

Hannah Dowling

Last Updated: 09 March 2022 Published: 22 October 2019

Written by Hannah Dowling

Last Updated: 09 March 2022

Published: 22 October 2019

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

MORE ABOUT THE AUTHOR