Personal finance company Credit Karma has acquired lendtech Approved in a bid to modernise mortgage lending process.
However, the financial details of the acquisition were not divulged.
In a blog post, Approved founder and CEO Andy Taylor said: “Approved has been acquired by Credit Karma to build a consumer-facing digital mortgage experience for its 80 million members.”
Taylor left real estate brokerage firm Redfin three years ago to address the complicated process of home loans by developing the fintech company Approved.
Credit Karma speeding up loans
Approved apparently streamlines the loan processing business by facilitating application procedure. In addition, it implemented swift documentation and reduced loan approval time.
In the process, Taylor claimed to have carried out $5bn in loan originations.
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Moreover, the acquisition by US-based Credit Karma is expected to provide Approved the necessary resources to expand. In addition, it hopes to offer its services to more prospective homebuyers.
Taylor in his blog post added: “Credit Karma shares the same DNA that made us proud to work at Redfin, with unrelenting attention to how technology can improve the financial lives of its members.”
Founded in 2007, Credit Karma also provides various financial services including credit cards, personal loans, student loan refinancing and mortgages.
In North America, the company has around 80 million members, half of which are millennials.
In March, technology investment firm Silver Lake acquired a minority stake in Credit Karma from existing equity holders for $500m.