An Orlando tech firm focused on removing bias from the mortgage lending process just scored $2.2 million in a pre-Series A fundraising round.
Home Lending Pal Inc.’s latest investment round was led by San Diego-based The Mortgage Collaborative, a network of mortgage firms, banks and credit unions. The funding sustains Home Lending Pal as it gears up for a larger Series A round and gives the company access to prominent lenders.
“The Mortgage Collaborative’s network will be vital in helping Home Lending Pal build a process that de-identifies Home Mortgage Disclosure Act data until after the underwriting decision is made,” said co-founder and CEO Bryan Young.
“This revolutionary technology allows underwriting data to be digitally validated while using a single upload of documentation to enable multiple lenders across the country to determine if they will work with the borrower without human biases from the upfront disclosure of age, sex or race.”
Creating mortgage roadmaps
Home Lending Pal has raised $3.5 million to date for its digital mortgage advising platform, powered by artificial intelligence and blockchain.
The online platform helps borrowers find mortgage options and assists them in assessing their financial ability to take out a mortgage loan, especially for minority and millennial consumers who often face challenges getting a mortgage. Home Lending Pal creates “personalized roadmaps” to get unqualified borrowers to qualified status, said co-founder and Chief Operating Officer Steven Better.
In addition to The Mortgage Collaborative, Home Lending Pal’s growing network of partners includes tech giant IBM, credit reporting firm Experian, home listing publisher ListHub and mortgage company AnnieMac. Troy, Michigan-based Flagstar Bank is the newest addition, becoming the biggest lender in Home Lending Pal’s emerging marketplace.
Meanwhile, Home Lending Pal expects to grow its team. The company employs 11 full-time employees plus 15 contractors the firm plans to make full-time after closing a Series A round, Young said. Further, there are 11 open positions listed on the firm’s website, including high-wage roles like data scientist, senior blockchain engineer and senior full stack developer.
Orlando angels, NFL linebacker also invest
The Mortgage Collaborative invested through the TMC Emerging Tech Fund it established in November. Other investors include BlueWave Investment Partners, Dallas Cowboys linebacker Jaylon Smith and insurance firm CUNA Mutual Group. Orlando angel investment group BlueWave Investment Partners previously led Home Lending Pal’s $900,000 seed round.
The group’s investors were happy to double down on the investment, BlueWave Investment Partners founder Charlie Lewis said. “We’re so confident in Young’s progress, we have decided to reinvest prior to the Series A, putting our investment group at more than $1 million [invested in Home Lending Pal].”
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