Bell says that while Ready Life accommodates minority homebuyers facing barriers, they also cater to gig economy workers who don’t have traditional W2 work forms to prove their incomes. “The traditional credit score system puts entrepreneurs at risk, too,” Bell said.
Bell says that Ready Life’s platform will track on-time rental payments as a form of credit review. Bell said that a Ready Life account holder who pays their rent on time and provides lease details to Ready Life that are confirmed with the lessor establishes a form of reliable credit. Bell reminded that sometimes, more often than not, rent payments are equal to or higher than most mortgage payments. “The goal is to improve minority ownership culture as they start to become the majority,” said Bell.
Licensed in 50 States
Ready Life’s platform was set to launch in September, with the initial goal for the campaign to pre-approve 100,000 mortgages. The company says that mortgage rates will stay competitive. “We are empowering our customers by using their own data to show lenders consistent payment and cash flow history as the basis for approving home loans,” said Lola Kress, Ready Life’s media representative. “Banks and secondary market lenders are looking for mortgages that align with ESG directives, whether it’s through CRA programs at banks or ESG commitments in private equity.”
So far, Ready Life is licensed in 48 states, but Bell says that they will reach all 50 by the launch date. The Ready Life Visa is aimed to also track and be useful for everyday expenditures. “If people make their payments on time, then they’re likely to pay a mortgage on time,” Bell said. Bell says that users must have the app for a minimum for six months before they approve for a mortgage. However, approval length varies by household. Mortgage amounts are capped at customers’ previous rental payments.
Bell says that Ready Life will act as the underwriter and partner with other banks who will then buy the mortgage. While Ready Life will assist buyers with down payment and closing cost assistance, mortgages will be held by banks and private equity groups on the secondary markets. So far, Ready Life is partnered with banks associated with JAM Special Opportunity Ventures, an affiliate of Fintop Capital. Other partnerships include Figure, a financial service that uses blockchain.