HOW DOES DIRECT MORTGAGE CAPITAL WORK?
Direct Mortgage Capital (DMC) is not a bank, nor a pay-day lender.
We are a mortgage platform that connects future home owner with capital and uses technology to create a better mortgage experience.
People come first
Have you ever heard the term «underbanked»? It describes groups of people with insufficient access to the traditional banking services. The main reason used to be insufficient income. However, mortgage lending situation has changed. Many potential borrowers have no access to money because they don’t match the «perfect customer profile» required by banks. Even if they can afford a mortgage.
Our lifestyle and types of employment are changing. However, the underwriting policies of banks don’t change with the times, resulting in a restricted access to housing financing. Self-employed, entrepreneurs, people with income abroad, professionals age over 45 are just a few examples of people for whom mortgage loans have become much harder to get.
DMC housing loans are designed for you – modern person with a unique story, experience and personality.
That is why they are more accessible for broader groups of people, expanding the borders drawn by banks.
Technology for a better mortgage experience
DMC uses financial technology to ensure a more convenient application process and faster response time. There is no place for outdated practices with heaps of documents and long reviews when it comes to such an important event as the purchase of home.
All required information can be submitted electronically. All you need is to authorize with your e-bank, and the system will take care of the rest. The answer about the loan amount you qualify for will be available even before you start searching for a house.
Shopping for housing becomes much more enjoyable – with less stress, more certainty, and much faster.
Sustainable mortgage financing
Latvia (as many other European countries) predominantly relies on the deposit model – housing loans are issued using the bank deposits. If the deposit volume isn’t high enough or fluctuates, access to mortgages decreases.
DMC attracts both local and international capital. It is possible because we use the «originate-to-sell» business model. All originated loans are turned into bonds or sold to investors. In addition, investor invests in mortgages directly, knowing details for each deal and choosing which loan to finance. Mortgage lending becomes more open, processes are more transparent, and level of control – higher.
This way housing financing becomes more accessible, because it no longer depends on deposits. DMC keeps servicing the loan, whereas loan agreement keeps protecting interests of the borrower until the loan is paid back.