A new lender says it can give a company’s employees up to 75 basis points off their interest rate through its mortgage benefits program.
Multiply Mortgage, founded in 2022, says the average worker utilizing its perks saves up to $5,700 per year, relative to home loan offers they were comparing the offer to. The broker and correspondent lender says it’s working with over 20 lenders to deliver home loan benefits at a time when steep unaffordability has crushed demand.
“The program has been super well received by employees,” said Michael White, co-founder and CEO of Multiply. “The general theme is that they end up being very grateful to their employer for enabling something as meaningful in their lives as homeownership.”
The Denver-based firm says it’s able to offer the discounts because of automations it has built into the origination process.
Multiply’s non-bank version of home loan benefits
Various banks and credit unions tout mortgage perks for employees, typically in the form of smaller closing cost discounts. Government-sponsored enterprise Freddie Mac provides its own workers an up to $15,000 subsidy for closing costs for new home buyers. Other financial institutions, like some of the nation’s largest banks, tout interest rate discounts for their workers although the rate reductions advertised vary.
White said he’s unaware of another firm that offers perks similar to Multiply’s holistic approach. The company began by offering financial wellness benefits for its partner firms, but found their workers using resources more for home buying efforts.
Multiply doesn’t charge companies to offer the benefits and says its advisors are available for unlimited consultations. They can also access loan products from government-sponsored home loans to non-qualified mortgages.
“We really believe that people aren’t just looking for a referral to a lender,” said White. “They’re looking for somebody to support and guide them through a complicated process and provide great service and rates.”
The lender says it saves on customer acquisition costs and uses its own point-of-sale. Multiply is also investing heavily on leveraging the application program interfaces from an “off-the-shelf” loan origination system to automate more processes.
White declined to share Multiply’s cost to originate, which for the rest of the industry averages in the low-five figures.
The company has approximately 30 employees, including 10 loan officers. It’s coming off a $23.5 million Series A funding round in March, and counts $27 million in total funding. Its services span 45 states and Washington, D.C. White said the company today is working with employees at 37 businesses.
According to a Multiply study earlier this year, two-thirds of workers surveyed said the stress of homebuying negatively affected their productivity, while another third said they spent over four hours per week distracted by the process.
In all, Multiply found the majority of respondents suggesting they would be more inclined to join a company if it provided mortgage benefits.
“It’s just such an emotionally meaningful life milestone for people,” said White. “And it really has a profound impact on retention and employee engagement when you can unlock something that is meaningful.”
