A lot of people stretch their resources to achieve the dream of home ownership. More than half of Canadians, for example, borrow their maximum to purchase a residence, according to research from the Canada Mortgage & Housing Corporation. However, as people reach for higher mortgage limits, they can be stymied by their credit scores.
A new licensing agreement between Marble Financial Inc. (MRBL:CSE; MRBLF:OTC; 2V0:FSE) and Citadel Mortgages aims to help would-be borrowers improve their creditworthiness.
The co-branded API solution gives Citadel’s customers an overview of where they stand relative to mortgage approval. Customers can use the MyMarble financial fitness program to improve their financial metrics, with the goal of qualifying for a mortgage in the amount they desire in the future. (See the Streetwise Reports June 2021 overview of Marble Financial.)
When an individual is declined for a mortgage, Mike Marrandino, executive chairman and director of Marble, told Streetwise, “The next step should be to look deeper to understand the reason for the denial, and then address the deficiencies. For would-be borrowers, this creates a path forward and simplifies the re-application process. For the mortgage agent, connecting their clients to our platform solidifies those relationships and improves their ROI as more loans are approved over time.”
As Citadel Mortgages expanded across Canada, its CEO Tristan Kirk said that “we have taken notice and listened to our clients about the desire to access more educational products to help them achieve mortgage freedom faster. We are excited by the Marble Connect solution and how it will allow our mortgage agents to continue offering best-in-class service and knowledge to ensure every Canadian has the opportunity of homeownership.”
Part of Marble’s advantage is its access to data not always available to banks or the three major credit ratings agencies (TransUnion and Equifax in Canada, along with Experion in the U.S.). In fact, rent is the single biggest data point missing from most credit assessments.
“You would think that a steady history of paying rent would be a consideration in making a mortgage decision,” Marrandino said. “Yet, because landlords don’t specifically report rent payments anywhere, the credit rating agencies and banks lack any data related to rent history. We have access to that data and can help individuals use it their advantage.”
Marrandino likens the Marble Connect API to a group of extension cords. Citadel will plug Marble Connect into its customer-facing platform, while retaining its own branding, look, and feel. This gives customers access to tools like Point Deduction Technology®, ScoreUp, financial portfolio overviews, expert recommendations, habit tracking, and spending trends to improve their overall financial fitness. Once an individual is approved for a mortgage, they can use tools like budgeting and cash flow analysis to solidify their financial fitness.
In addition to Marble’s agreement with Citadel, its Inverite subsidiary recently entered into a data verification engagement with PowerSports, one of Canada’s largest alternative financing companies for the sale of ATVs, snowmobiles, motorcycles, boats and watercraft, RVs, and travel trailers. Using Inverite’s technology, PowerSports obtains fast and secure digital identity information and real-time banking verification. Inverite and Marble gain data from each transaction, further improving their analyses.
Marble is actively pursuing growth opportunities in the automotive sector, modeled on the success of the PowerSports engagement. The firm is also talking with health and benefits managers in several large companies.
Marrandino summed up the value of investing in employee health: “Research suggests that financial stress contributes to between seven to 10 hours a week in lost productivity. Companies see the value in a product like ours that reduces that stress by raising their employees’ financial literacy and improving their financial fitness.”
More growth is expected when Marble expands to the U.S., starting with its proprietary Points Deduction Technology, which guides individuals to time their monthly payments such as credit card balances, for maximum impact on their credit scores. “Our technology is agnostic in any country that uses Transunion, Equifax, or Experion as their credit reporting agencies, but currently exclusive to us in Canada, which is a good combination,” Marrandino concludes.
Marble currently has approximately 77 million shares outstanding and around 95 million fully diluted; management, insiders, and strategic investors own around 50%.
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Disclosure:
1) Diane Fraser compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
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