National direct-to-consumer lender Sage Home Loans is entering into a partnership with leading retail securities trading fintech Robinhood to provide discounted mortgage options to the latter platform's select users.
Through an exclusive agreement, Robinhood's gold-tier subscribers will be able to apply for mortgage loans through the digital platform's app or website and take advantage of interest rates at least 75 basis points below the national average, the two companies said. Borrowers will also receive a $500 credit
"So much has been written about how homeownership is less achievable, less affordable," said Sage CEO Mike Malloy in an interview with National Mortgage News.
The deal took shape after other relationships between San Francisco-based Robinhood and Sage's parent company, Red Ventures, had achieved success, Malloy added.
Its official launch arrives after this part summer's completion of a mortgage pilot involving a segment of Robinhood Gold subscribers — a premium subscription open to current customers for an additional $5 a month or $50 annually. The fintech's leadership described the initial reaction and feedback as "tremendous" in a July earnings call and cited how it aligned with its own expansion goals, paving the way to the partnership.
"With a significant number of our customers not yet owning a home, this work allows us to meet a real customer need while deepening our role in our customers' financial lives," said Sakhi Gandhi, Robinhood's director of partnerships, in a statement.
"Ultimately, our goal is to make Robinhood Gold the most valuable financial subscription service available and to deliver meaningful impact across investing, saving and now, homeownership. We feel this collaboration with Sage Home Loans brings us one step closer to that goal," she continued.
Founded in 2013, Robinhood helped fuel the acceleration of the retail investment boom, making stock trading available through a few clicks on a phone. While it eased the trading process, Robinhood's platform has also been
Since its early days as a retail trading startup, Robinhood has grown significantly branched out into other segments of financial services,
A relatively recent arrival as an independent mortgage bank, Sage Home Loans was an ideal business partner for a company like Robinhood, whose clients are the type of borrowers the lender wanted to attract, Malloy said. Based in Fort Mill, South Carolina, Sage began operations in 2020.
"I think the mission that Robinhood has to democratize finance and to do so in a way that's enabled with technology — to build education, to allow people to grow in their financial lives — is perfectly aligned with what we are trying to do at Sage," Malloy said.
"We are a digital-first lender. We are very focused on making mortgage simple."
What Robinhood subscribers will see
Upon signaling interest by clicking on the mortgage offer, Robinhood Gold subscribers will initially encounter online educational materials before being directed to a co-branded page with additional program details. If they choose to move forward, the site will send them into Sage's digital workflow. All loan types on offer by the lender are available to Robinhood's clients.
"If they are interested in pursuing something, we are the lender of record, and all of that happens in Sage's modality. Robinhood is licensed to do many other things, but we are doing the mortgage lending here," Malloy explained.
After first arriving on the technology scene in the middle of the last decade, Robinhood saw popularity surge among both consumers and investors and achieved unicorn status in 2017. The fintech went public in 2021, with its stock currently traded on the Nasdaq composite.
