Staircase Raises $18M to Build AWS Marketplace for Mortgages

Streamlining the Mortgage Process with Technology

Applying for a mortgage can often be a lengthy, costly, and frustrating experience, encompassing both the application process and the subsequent wait for closure.

Recently, numerous digital lending platforms have emerged, aiming to integrate more technology and reduce the tediousness and delays inherent in traditional methods.

However, fewer companies have focused on building the underlying digital infrastructure necessary for these lenders to deliver mortgages with significantly improved speed.

Introducing Staircase: An API for Mortgage Origination

Staircase, a Philadelphia-based startup, has developed an application programming interface (API) designed to connect the diverse parties involved in mortgage origination.

By facilitating integration between these entities, Staircase intends to deliver a more efficient – and considerably faster – experience for both borrowers and mortgage providers.

According to Staircase CEO and co-founder Adam Kalamchi, “The complexity of loan origination stems from the numerous systems and entities requiring data sharing and validation.

The absence of a standardized communication protocol further exacerbates this challenge.” He continues, “Our solution is an integration orchestration layer that unites these parties, instantly enabling access to innovative mortgage technologies.”

Current Timelines and Costs

Currently, securing a mortgage typically takes an average of 45 days.

A recent report by the Mortgage Bankers Association (MBA) indicates that total loan production expenses averaged $9,140 per loan during the third quarter of 2021.

Staircase asserts that its API can enable seamless communication among all participants “with just a few clicks,” reducing the mortgage acquisition timeframe to 10 days and the origination cost to $1,000.

The Genesis of Staircase

Kalamchi, previously a proptech investor, and co-founder Soofi Safavi, with a background in application development at JPMorgan Chase, founded Staircase upon recognizing “a lack of purpose-built API infrastructure for the mortgage industry.”

Kalamchi explained to TechCrunch, “Numerous excellent technologies exist, but integrating them individually is a complex undertaking, as they all differ.

Our goal is to simplify, accelerate, and reduce costs… Staircase functions as a marketplace for the mortgage industry, similar to how AWS Marketplace serves the enterprise.

Like AWS, we prioritize a product that is self-sufficient and easily integrated.”

Securing Series A Funding

This ambitious vision has attracted significant investment.

Staircase has successfully closed a $18 million Series A funding round, led by Bessemer Ventures, bringing the company’s total funding since its inception in early 2020 to $24 million.

Additional investors include RRE Ventures, Avid Ventures, Clocktower Technology Ventures, MetaProp Ventures, and Zigg Capital.

Charles Birnbaum, partner at Bessemer Venture Partners, stated, “The Staircase team has proactively addressed critical data, integration, and workflow challenges within the mortgage landscape, mirroring the success of our developer platform investments.

Having observed Staircase’s progress and collaborated with early customers, we are enthusiastic about supporting their journey to modernize the financial services sector by facilitating access to contemporary solutions without disrupting existing legacy systems.”

Broad Applicability of Staircase’s APIs

Notably, Staircase’s founders emphasize that their APIs will benefit not only digital lenders but also a wide array of organizations.

This includes government-sponsored enterprises like Fannie Mae and Freddie Mac, employment verification services, established mortgage technology providers such as Ellie Mae and Black Knight, mortgage insurers, retail banks, and wholesale banks.

This broad appeal is also a key factor for Bessemer.

Birnbaum noted, “While innovative products have emerged to enhance digital experiences in the mortgage industry, Staircase is the first true platform to integrate these advancements and collaborate with both cutting-edge and legacy providers.

This integration will automate more of the process and leverage the cloud, aligning with the advancements seen in other segments of consumer financial services.”