SAN FRANCISCO, CA--(Marketwired - Jan 20, 2016) - Blend, the Silicon Valley technology company transforming the mortgage industry, today announces it raised $40 million in Series C funding led by Founders Fund. Lightspeed and Formation 8 are existing investors participating in the round. Blend will use these funds to continue to recruit top engineering talent and bring its platform to more lenders to originate efficient, data-driven mortgages.
"The multi-trillion dollar mortgage industry has been running on legacy technology for decades. Lenders and borrowers are underserved," said Blend CEO Nima Ghamsari. "We've built a flexible product that reduces the data collection burden for borrowers and speeds up processes for lenders while retaining airtight digital compliance. We're thrilled that Founders Fund's support will allow us to reach even more lenders and improve the mortgage experience for their borrowers."
A single mortgage costs over $7,000 to originate. Each year the industry spends billions on largely repeatable and automatable tasks.1 Through Blend, originators can reduce that cost while maintaining compliance and delivering an elegant, digital experience to borrowers in weeks.
"This is a technology challenge that lenders are not positioned to solve on their own," said Peter Thiel, partner at Founders Fund. "Blend's engineers and data scientists are making the high-stakes mortgage transaction better for lenders and borrowers. They are changing the way the entire industry operates."
Several top-30 lenders have been using Blend's technology to serve the modern borrower and safely navigate the industry's rules and regulations. Thirty percent of borrowers at one Blend client lender are using their mobile devices to fill out their mortgage applications. Close to half of these customers are doing so on nights and weekends, outside of traditional customer service hours.
At its core, Blend surfaces high-fidelity data sources -- including digitized pay stubs, tax forms, and bank statements -- empowering borrowers to supply these securely to their lender, speeding up the approval process by weeks. These digitized loan elements, coupled with automated rules and configurable workflows, enable full digital compliance, including recent TILA-RESPA disclosure requirements. Blend logs every touch point between the lender and borrower in the application process, enabling full governability and auditability.
Blend is a fast-growing deep Silicon Valley technology company based in San Francisco. Its engineers, data scientists, product managers, and designers hail from the country's leading computer science programs as well as top technology companies including Palantir, Microsoft, and Intuit. To learn more, visit: https://blendlabs.com/company/jobs/.
Blend is a Silicon Valley technology company transforming the multi-trillion dollar home mortgage industry. Blend's technology delivers speed and efficiency to lenders, so they can serve the modern borrower and safely navigate the industry's changing rules and regulations. Founded in May 2012, Blend is backed by Peter Thiel, Andreessen Horowitz, Max Levchin, Hans Morris, and other leading venture investors. To learn more, visit: https://blendlabs.com/.
1 Quarterly MBA Production Report -- 2015 Q1