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
DMC mortgage platform operates as a lender and a broker.
We utilize the network of banks to find the best deal for the customer. And we use our own lending power to broaden mortgage programs beyond the reach of banks.
The lifestyle and types of employment are changing, while underwriting policies of banks are slow to catch up, still favoring the “perfect customer”. 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DMC closes this gap in the market favoring people over bureaucracy, and customer needs over outdated practices.
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 There is no place for outdated practices with heaps of documents and long reviews when it comes to such an important event as the purchase of home.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 funds its lending efforts by attracting both local and international capital. It is possible because in addition to loan brokering, we use the «originate-to-sell» business model. All loans that are funded by DMC are turned into bonds or sold to investors. 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.
Housing financing becomes more accessible, because it no longer depends just on deposits. DMC keeps servicing the loan, whereas loan agreement keeps protecting interests of the borrower until the loan is paid back.