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Direct Mortgage Capital chose Lendstream as their foundation to create a non-bank mortgage lending entity in the Baltics. The local banks who would be the main buyers of their loan portfolio were skeptical that their KYC checks and loan underwriting process would be up to the standards of a traditional bank.
Lendstreams AI-powered credit decision engine pulled data from 4 different sources: a credit reference agency, an open banking provider, a bank statement categorization provider, and a state-owned agency. A realtor web application was custom developed to do quick credibility checks of individuals who applied to purchase property.
The loan underwriting process proved to match and even exceed the risk management standards of a traditional bank. An additional back-end system functionality was developed so the growing number of declined loan applications could be dealt with and referred to other lenders on the market.
Money Tree’s initial approach was to onboard their customers through their website using the standard customer funnel model supported by Lendstream’s core system. After launching, they decided to work with traditional loan marketplaces to increase loan volume. They quickly realized loan marketplaces would be their main source of applications – but because loan marketplaces won’t share borrower data, they didn’t have a way to check borrower credibility with their existing systems in place.
Lendstream was configured with their system in a way that gave Money Tree the capability to do credit checks based only on their borrowers’ personal ID.
With this capability, Money Tree is able to give a Decision in Principle without requiring the extra data previously needed. They’re now able to receive borrower contact data from the marketplace so they can contact their borrowers directly.
Ahauz needed a system with extreme adaptability. They wanted something that would work with a profit-sharing business model, as well as something that would make it easy for them to create new products and variable terms, rates, and fees based on market demand.
The system was first adapted to the profit-sharing business model. After Arhauz’s MVP launch the system was quickly configured to create new products and variable terms, rates, and fees needed based on shifting market demand.
Ahauz is now able to quickly launch personalized loan products that are reflective of current market demand.