Online mortgage lender, Better Mortgage, has funded more than $500 million in loans since its launch roughly one year ago. The company has announced that they are now planning to expand thanks to a $15 million round of funding.
Better Mortgage has recently completed its Series B funding from three investors, the company announced. Included in those three investors is Goldman Sachs, which is increasing its investment in the online lender. The other two investors are Kleiner Perkins and Pine Brook.
“Better is a breakthrough for consumers in the mortgage market,” Noah Knauf, general partner at Kleiner Perkins, said. “The next generation of homebuyers will expect a customer experience that none of the current industry players are equipped to deliver, and we’re very excited to join Goldman Sachs and Pine Brook in helping Better transform the market.”
Goldman Sachs invested $30 million in Better Mortgage last year. This investment was the first investment in a mortgage bank by a major Wall Street firm in almost 10 years. Now, Goldman Sachs has decided to invest in the company again.
“Technology has upended personal finance, replacing expensive middlemen with intuitive and transparent online processes,” said Nicholaos Krenteras, partner at Pine Brook.
“The exception has been the mortgage origination business, which has been sheltered by onerous capital, regulatory, and operating requirements,” Krenteras continued. “Innovation in the industry has been defined by traditional players patching together third-party services, leading to poor borrower experiences and runaway costs. In contrast, Better built a seamless digital platform from the ground up.”
Better Mortgage plans to use the money to support the launch and expansion of their home purchase finance product on the company’s website, Better.com, according to the company.
“We built the best customer experience out there; the one we would want for ourselves, our friends and family,” said Vishal Garg, founder and CEO of Better Mortgage. “With over half a billion dollars in loans originated in our first year—more than any other fintech startup in its initial year of launch—consumers have confirmed that we are onto something extraordinary.”
Garg was recently honored by HousingWire Magazine as one of the 2016 HW Vanguard Award winners, an award given to the top executives leading the mortgage industry.
The company currently operates in California, New Jersey, North Carolina, Pennsylvania, Washington, Oregon, Connecticut, Illinois and Washington D.C. The company also plans to continue to expand its licensing geographic in 2017.