- Beeline — a digital startup mortgage lender company that provides the shortest path to homeownership — recently announced it raised a Series A funding round. These are the details.
Beeline — a digital startup mortgage lender company that provides the shortest path to homeownership — recently announced it has completed a Series A round of funding for an undisclosed amount. The capital will be used for automation and artificial intelligence (AI) to provide a totally unprecedented user experience (UX) for borrowers.
This funding round was led by the Cavalry Fund and included participation from strategic co-investors Atalaya Capital Management, Ellington Financial, and Pipeline Capital. And the latest funding round brings the total capital raised by Beeline to $22 million.
The new funding round will accelerate the development of Beeline’s groundbreaking mortgage automation platform, which identifies, processes, and resolves underwriting conditions in real-time so borrowers can instantly know if they are pre-approved for a loan.
Launched in June 2020, Beeline has already closed nearly $500 million in mortgages. And the company is currently licensed in 26 states and plans to add more.
In only 15 minutes, Beeline gives borrowers “Purchase-Ready Approvals,” day or night, by using a borrower’s exact financial information and predictive analytics rather than relying solely on information that borrowers declare, as traditional pre-approvals do. And with the borrower’s consent, Beeline securely accesses their bank, income, and tax information online, verifies the numbers instantly, and provides a reliable, accurate approval upfront, so borrowers are far less likely to encounter roadblocks or be disappointed later.
Beeline borrowers can then select a customizable loan option and lock their mortgage rate all in one session, from the comfort of their sofa, without having to talk to their Beeline Loan Guide — who is always on-hand if needed. And currently, over 95% of Beeline’s customers who receive automated mortgage decisions are ultimately approved during the underwriting process. This high level of automation and accuracy reduces Beeline’s origination costs — which enables the company to offer more attractive pricing compared to other lenders.
KEY QUOTES:
“We’re thrilled to welcome our new equity partners, who are aligned with our vision of using automation to disrupt the housing industry and revolutionize how people get mortgages. This transaction positions Beeline to provide consumers with a home financing experience that surpasses all other currently available options.”
“Beeline’s tech platform delights customers by streamlining the process to arrive quickly at their end goal, whether it’s buying their dream home, doing a refinance, or buying an investment property. It is also built to lower the cost of creating a mortgage, so we need fewer employees per loan than traditional lenders — and our borrowers benefit from that in lower rates and costs.”
— Beeline President and Co-Founder Peter Gonzalez
“This is the classic example of David up against the Goliaths of the mortgage industry. Our unique, mobile-first platform combines automation, AI, and a simple UX in new ways to free people from the usual back-and-forth loan process B.S., so they can celebrate the thrill of buying a home or the benefits of a refinance as quickly as possible.”
— Greg Ellis, chief brand officer and co-founder of Beeline
