alarm:clock

eCommerce - Thursday, July 16, 2009

Home-Account Funded As Automated Mortgage Broker

San Francisco-based Home-Account Inc., which operates an online mortgage finding service, has raised an undisclosed amount of new funding from Rembrandt Ventures and Freedom Financial Network. It previously had been seeded by Charles River Ventures’ QuickStart program as well as angels like Marc Benioff, Ron Conway, Mark Pincus, Jeff Clavier, Arjun Gupta, and Gigi Brisson.

We like the financial model give that it is not reliant on the online ad market. The basic fee is $49.95. If the homeowner qualifies for a mortgage Home-Account provides automated counseling and suggests the lowest available rates and terms. There's also a money-back guarantee - if the homeowner can find a mortgage anywhere else for less that they can qualify for—the fee is refunded.

We note that earlier Home-Account had charged $10 so the fee is up but there is a guarantee. As we noted in a prior post, we like Home-Account's model vs. LendingTree as Home-Account's client is the consumer whereas Lending Tree is really a lead gen source for the mortgage companies. For a while LendingTree had a great business model but as the mortgage biz has cratered so has LendingTree.

View - site