Chicago-based mortgage lender Guaranteed Rate has formed a new technology spinoff as it works to innovate and simplify the loan process.
The spinoff, called Gateless, works to automate the lending process using artificial intelligence and machine learning. The software helps reduce manual tasks and human errors by automating document review and filing, Guaranteed Rate said.
Guaranteed Rate announced Monday that Gateless has raised an undisclosed amount in a Series A round led by the firm’s President and CEO Victor Ciardelli and Boston-based private equity firm Thomas H. Lee Partners. In 2017, Guaranteed Rate sold a large stake to Thomas H. Lee Partners in a deal that was reportedly worth more than $100 million.
"Gateless was founded to accelerate innovation across the mortgage industry," Ciardelli said in a statement. "With our deep understanding of the mortgage process, we are collaborating with Gateless to use artificial intelligence to dramatically streamline workflow. As a result, we've been able to generate massive time savings and cost efficiencies."
Gateless isn’t Guaranteed Rate’s first spinoff company. Last year, the mortgage lender teamed up with Chicago-based @properties on a joint independent retail mortgage lender venture called Proper Rate, which offers home buyers and owners personalized lending services. Proper Rate provides an integrated solution where clients can get financing in addition to finding homes and negotiating purchases.
Guaranteed Rate, founded in 2000, employs more than 9,000 employees across all of its brands in over 750 offices across the U.S., according to its website.
