New York-based digital mortgage lender company Better Mortgage has raised $70 million in Series C funding from American Express Ventures and the Healthcare of Ontario Pension Plan (HOOPP). Existing investors Kleiner Perkins, Goldman Sachs, and Pine Brook also participated in this round. With this funding round, it will support Better Mortgage’s continued growth and investment in its technology platform.
Last year, Better Mortgage doubled its footprint to include over half of the states in the U.S. and originated $1.3 billion in mortgages, which is a 3x increase from the prior year.
“Better is building the future of homeownership,” said Better Mortgage founder and CEO Vishal Garg. “By re-engineering the mortgage process, removing costly commissions and creating a more efficient, reliable homebuying experience, Better is transforming how Americans buy their homes.”
Better is going to continue its mission to change the way Americans buy and refinance their homes through low rates and faster closing times. And Better will continue its expansion this year with investments in technology, employee growth, and development of partnership channels.
“Buying a home is one of the biggest financial life events that our customers experience, but the process is often full of pain points,” added Amex Ventures managing director Lindsay Fitzgerald. “By building a mortgage platform to be fully digital from the ground up, Better Mortgage has reduced the complexity around the homebuying process. We’re excited to support Better Mortgage’s next phase of growth.”
Since Eric Wilson, Erik Bernhardsson, Viral Shah, and Vishal Garg launched Better Mortgage in January 2016, the company funded over $2 billion in loans and helped over 7,000 Americans buy or refinance their home. Better employs non-commissioned loan officers who put service over sales and lowers the costs of homeownership. Plus Better is a direct lender that took the mortgage process online and digitized and removed the inefficient aspects of the process.
“We believe Better Mortgage is uniquely positioned for exceptional growth in the marketplace and offers a valuable service to prospective clients,” explained HOOPP’s Assistant Vice President of Derivatives and Fixed Income Jennifer Shum. “We were drawn to this investment because of its strong management team, the sophistication of its technology and the market opportunity.”