Jia Finance Reduces Mortgage Application Time From 90 Days to 30

https://thefintechtimes.com/jia-finance-reduces-mortgage-application-time-from-90-days-to-30/
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The cumbersome, low tech application process for mortgages funds and underwriting decisions has been improved as Jia Finance, the online mortgage platform for foreign investors, launches its services in China. International investors will be able to use the company’s data analysis, AI and identity verification technology to cut the transaction time period of an application from 90 days to 30.

Jia Finance received its latest funding ($5million seed funding) from venture capital investor TTV Capital, one of the longest active VC firms investing exclusively in fintech and known for early fintech investments in Bill.com, Green Dot, and Cardlytics, among others. Other investors include Stanford Angels, the co-founder of SoFi as well as the founder of UK top investment app, Nutmeg.

A major stumbling block for international real estate buyers is the fact that they lack a US credit score as well as much of the general paperwork US banks typically request during the mortgage application process. This causes major challenges for prospective buyers, slowing approvals to 90 days or longer.

Jia Finance leverages its AI technology platform and mobile applications and reduces the time required to verify a customer’s identity through facial recognition. The company is currently managing hundreds of international mortgage applications every month. Typical customers are Chinese middle-class investors looking to enter new international (US) markets, primarily in California, Florida, Texas and Washington, with many seeking to invest in single-family homes or condos which they will then rent out. Jia Finance has its headquarters in Washington, D.C. tasked with overseeing its mortgage operations while software and business development teams operate out of its offices in Shanghai.

“Jia Finance is creating global mortgages, starting with buyers from China and Asia where our platform is dramatically improving the process for these international investors to gain access to US real estate. Buyers use our technology as we underwrite, fund, and price loans, in a system that delivers speed and ease – all in about 30 days,” said Sufian Creui, co-founder and CEO, Jia Finance.

“Traditional banks have not been interested in this slice of the mortgage business, perceiving the process as time-consuming and unprofitable. We are giving the rising Chinese middle-class access to a highly sought-after asset class through a much easier, smoother process for obtaining US residential real estate mortgages,” Creui continued.

According to data from the National Association of Realtors, foreign investors in the US residential real estate market make up 2.8 per cent of the $1.96trillion spent on existing homes from April 2020 to March 2021. Investors from the Asia-Pacific region represented 22 per cent of all foreign buyers during that same period (coming in above Latin America at 19 per cent and Europe at 11per cent). Asian investors see US real estate as a safe haven given its recent strong performance since the beginning of the pandemic at a time when many other real estate markets failed to demonstrate similar resilience.

“We are impressed with the Jia Finance approach which is tailored for the particular needs of the international real estate investor. The high-touch customer experience makes the process faster and easier and gives Jia Finance a way to successfully penetrate and monetise a large and lucrative market opportunity,” said Mike Hurst, TTV Capital.

  • Francis is a junior journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

https://thefintechtimes.com/jia-finance-reduces-mortgage-application-time-from-90-days-to-30/