Blend Labs, a California-based mortgage tech firm, is focused on cutting costs and expanding its Blend Builder platform to achieve profitability after posting a net loss of $768.6 million in 2022. The company’s net loss last year was over four times the loss incurred in 2021. Blend is placing its bets on its technology and prioritizing cost reductions for the year 2023. Its eyes are now set on driving user adoption of its Blend Builder platform, which the company launched “composable origination” technology this week to enable clients to build their own origination products.
Blend’s white-label technology is utilized by major lenders, including Wells Fargo and U.S. Bank, to drive their mortgage applications. These lenders collaborate with Blend to fully leverage composable origination via the Builder Platform, which delivers pre-built integrations with all significant tech stacks utilized in the financial services industry.
Blend’s composable origination technology allows its partners to create their own origination products, giving them more control and flexibility. Additionally, Blend is making efforts to include its mortgage offering on the platform in all of its future offerings, aspiring to become a platform-as-a-service (PaaS) company.
Blend witnessed an increase in the adoption of the LOs’ toolkit across all 10 features in the fourth quarter of the previous year, and the company anticipates that this trend will persist in the first quarter of 2023. Blend expects to see the full benefit of the cost-cutting actions it took last year and in January in the first quarter.
Blend slashed about 28% of its workforce, or roughly 340 jobs, in January after the company’s net loss of $133.98 million in the third quarter of 2022. Amir Jafari, the new CFO of Blend, stated that the company aims to decrease the annual cost of revenue and operating expenses by over $100 million on a non-GAAP basis by the end of the year.