Digital Closings Are Here to Stay: Snapdocs Raises $60 Million to Scale Mortgage Platform Connecting 130,000+ Real Estate Professionals
Powering $400 Billion in Transactions Annually, Snapdocs to Surpass 1.5 Million Closings in 2020
San Francisco; October 12, 2020 – The pandemic has accelerated the mortgage industry’s digital transformation by many years. It is clear that digital closings are here to stay. Now with home sales surging, and interest rates near all-time lows, leading digital mortgage platform company Snapdocs today announced $60 million in new funding. This Series C comes less than 12 months after raising $25 million and serves as a massive endorsement of its vision and work to simplify the mortgage closing process online. YC Continuity led the round, with participation from all existing investors, including Sequoia Capital, F-Prime Capital and Founders Fund, as well as new investors Lachy Groom and DocuSign. Snapdocs will use the funds to build on recent momentum, drive product innovation and scale operations, and as part of the deal, Anu Hariharan of YC Continuity will join the board of directors.
“I’ve known the Snapdocs team for many years and have always been amazed by their focus and execution toward bringing each stakeholder in the mortgage process online,” said Anu Hariharan, partner at YC Continuity. “In 2013, Snapdocs began as a notary marketplace before expanding horizontally to service title companies and, more recently, lenders. By connecting the numerous parties involved in a mortgage on a single platform, Snapdocs is quickly becoming the “operating system” for mortgage closings. Mortgages, much like commerce, will shift online, bringing improved efficiency and a far better customer experience to the outdated home-closing process.”
Snapdocs offers a cloud-based suite of products that connect all constituents involved in a mortgage closing to simplify the process across all types of closings. It is the most comprehensive solution available, allowing lenders, settlement agents, title companies, borrowers, notaries, and more to come together online to close more deals at lower cost. Snapdocs’ products include the industry’s largest real estate notary network, a signing and scheduling solution for title and escrow companies, and a digital closing platform for mortgage lenders and their settlement partners.
Building the Mortgage Industry’s Largest Network of Closing Partners
Snapdocs has grown significantly in 2020 through supporting the mortgage industry’s move to digital closings. In August 2020, when home sales were at their highest level since December 2006, Snapdocs powered approximately 170,000 closings, nearly 15% of all deals done nationally that month and approximately $50 billion in transactions. Of note, the company will surpass 1.5 million closings in 2020, more than doubling its volume from 2019.
“We’ve handled our highest volume of mortgages to date in 2020 – an over 40% year-over-year increase – without additional team members, and during a global pandemic, in large part due to Snapdocs,” said Tom Knapp, CIO of Waterstone Mortgage. “By streamlining and standardizing our closing process on Snapdocs, our team and our partners are working smarter and faster, not to mention offering a more consistent closing experience to borrowers. Snapdocs has been critical to our continued success.”
Snapdocs has nearly tripled the number of real estate professionals on its platform this year, now with 130,000+ relying on Snapdocs each day to get deals done. The company has also added dozens of enterprise customers to its platform, including large national lenders Bell Bank and LeaderOne Financial Corporation, regional lender Googain, and local credit union Georgia United Credit Union.
Snapdocs is now used by more than 70% of settlement agents nationally, bringing together all parties via an intuitive, scalable process and increasing efficiencies across the entire mortgage value chain. This approach has led to a significant increase in the number and breadth of participants involved in each transaction on Snapdocs in the past year.
Leading AI Accelerates Closings and Streamline Workflows
Snapdocs’ massive network of real estate professionals provides the foundation for its AI-enabled digital closing platform. With all closing partners, documents and related data within one cloud-based service, Snapcdocs can uniquely apply AI to quickly analyze these large swaths of information for insights into areas like compliance risks, team workflows and document errors.
The company recently released a number of new AI-enabled features, strengthening its unique ability to deliver an efficient, error-free closing to all participants. Snapdocs’ platform now automatically sorts and annotates entire closing packages for eSignature – including standard and custom lender documents, every title document, and all security instruments. Snapdocs is the only platform that can serve lenders on unlimited volume for every closing type, with every settlement partner, in every county, in minutes. The new funding will support continued product innovation across the platform.
“The pandemic has changed real estate forever. We’ve long talked about digital closings, but the incredible combination of global and market forces have compelled everyone to finally adopt digital solutions that solve the core problems in a closing: the fragmentation and inefficiency inherent in a process involving so many parties,” said Aaron King, founder and CEO of Snapdocs. “This record year and new capital will allow us to scale in all capacities and continue to serve our customers as they break new records and navigate these unprecedented times.”
Snapdocs is simplifying the mortgage closing process. As the provider of the industry’s leading mortgage platform, Snapdocs provides 130,000+ real estate professionals with a pragmatic, proven path to adopt digital closings and create a single, scalable process online for every transaction. The company powered more than 13% of all U.S. residential mortgages in the last 12 months and is backed by prominent investors including YC Continuity, Sequoia Capital, F-Prime Capital and Founders Fund. To learn more, please visit snapdocs.com.