Tidalwave, a New York-based agentic AI mortgage point-of-sale platform, has raised a $22 million Series A round led by Permanent Capital, with participation from D.R. Horton (the largest homebuilder in the United States), and follow-on funding from Engineering Capital. The round brings the company’s total capital raised to $24 million. And it marks a significant new enterprise relationship, as D.R. Horton is investing as both a strategic partner and a new enterprise customer.
The mortgage industry continues to struggle with a fragmented ecosystem that relies heavily on manual data entry and disjointed digital tools. The process still averages 43 days to close and requires substantial labor across multiple systems. Research from Freddie Mac indicates that lenders using digital automation tools can reduce origination costs by $1,500 per loan while improving margins and borrower satisfaction. Tidalwave has built an agentic AI platform that automates tasks such as verification and underwriting with minimal manual input by leveraging direct integrations with Fannie Mae and Freddie Mac for instant underwriting checks, as well as real-time verification partners including Plaid, Argyle, and Truv.
With its new funding, Tidalwave plans to accelerate the adoption of its technology across the mortgage ecosystem. The company projects that its platform will power more than 200,000 loans per year, equivalent to approximately 4 percent of the $1.46 trillion in mortgage originations forecast for 2026 by the Mortgage Bankers Association. The company has gained industry momentum over the past six months, adding NEXA Lending, First Colony Mortgage, and Mortgage Solutions as customers seeking to reduce paperwork, cut approval times, and streamline borrower engagement through automated workflows.
Tidalwave’s technology aims to deliver a simplified, accessible mortgage process that reduces errors, eliminates bottlenecks, and improves borrower experience, including support for Spanish-speaking applicants. The company believes that AI-driven workflows will help lenders deliver faster decisions and higher-quality outcomes at scale.
KEY QUOTES
“The mortgage industry has long been reliant on disjointed tools and manual intervention, leading to costly delays and errors. With this new funding, we’re supercharging the buildout of intelligent AI agents, allowing us to get these tools into the hands of lenders and borrowers faster than ever. By accelerating adoption, we’re not only making the mortgage process more efficient, we’re also ensuring that every stakeholder, from loan officers to homebuyers, experiences the tangible benefits of real, scalable AI in action.”
Diane Yu, CEO and Co founder, Tidalwave
“After evaluating all companies in this category, Tidalwave stood out for its powerful application of real AI to solve a massive, industry wide problem. Their technology is already delivering measurable impact, and we are confident in their vision to transform the mortgage landscape.”
Jason Duboe, Co founder and Managing Partner, Permanent Capital; New Tidalwave Board Member
“This partnership represents an alignment of vision, innovation, and execution. Both of our companies share the goal of advancing the mortgage process through AI by empowering our people and providing powerful new tools to enhance quality and efficiency. Over the past few months, we’ve had the privilege of working closely with Diane Yu and her team and we are confident that together we will transform lending for years to come.”
Mark Winter, CEO, DHI Mortgage (Subsidiary of D.R. Horton, Inc.)
