Problem

Banks are currently lending* without being able to ensure the use of funds on home improvement projects which means they are not fully minimizing their credit risk or optimizing their fees and LTV ratios. These conditions in turn reduce the bank's potential loan volume. Approximately 21 million American households and some 690,000 remodeling contractors currently embark on remodeling projects every year whilst suffering unnecessary cost, risk and inefficiencies. The negative external costs of these risks on the participants, housing market and wider economy cannot be underestimated.

* US banks currently provide around $171.2 Bn of home equity loans for improvement to households every year, households report spending 78% of this finance ($133.5 Bn) on making home improvements. (Source: Emerging Cohort Trends in Housing Debt and Home Equity George S. Masnick, Zhu Xiao Di, and Eric S. Belsky January 2005 - Original figure of $276.5 Bn however DIY expenditures have been factored out.)

Solution

OnisLiving provides homeowners wanting to remodel their home with contractors that are guaranteed to perform. This is achieved via the use of a 100% performance bond. We also provide contractors with homeowners that are guaranteed to pay. This is achieved via the use of a trust account within the bank where the bank has deposited the homeowner's loan in advance. The bank only pays the contractor upon sign off from the homeowner via our website's project administration platform.

Management

Our CEO, Fraser Patterson, is the co-founder and former CEO of OnisVida in Mexico. During his tenure he successfully designed and implemented the business model and contractual framework and acquired Infonavit (Latin America's largest mortgage lender) and HSBC Premier as clients. Our CMO, Anna Karp, has strong experience in successfully co-developing marketing campaigns for banks and other institutions in this market. Our CTO, James Cockin, has been integral to the design of the OnisLiving platform since its inception.

End User service

The OnisLiving model allows homeowners to easily find vetted contractors, obtain secure financing "Home Improvement Performance Assured Loans (HI-PALs)" and guarantee the completion and quality of their project with minimal cost and hassle. Our platform ensures transparency, efficiency and security for the homeowner.