Company partners with Starwood Capital Group and Freedom Mortgage, and secures Freddie Mac and Federal Housing Administration approval, to service government-backed loans
Valon, a tech-enabled residential mortgage servicer, announced a $43.9 million investment, to continue fueling the company’s rapid growth through hiring, the development of a loan originations and property insurance business, and potential future strategic acquisitions. The investment includes participation from an affiliate of Starwood Capital Group, an affiliate of Freedom Mortgage, Human Capital Management, and independent investor and CEO of SoftBank Group International Marcelo Claure, alongside previous investors Andreessen Horowitz, New Residential Investment Corporation (NRZ), an affiliate of Fortress Investment Group LLC, and 166 2nd LLC. The deal follows a $50 million Series A round, closed in February 2021.
“Many homeowners are unaware of just how resourceful their mortgage servicers should be. Instead of struggling to make payments and relying on temporary fixes, they could instead rely on sustainable long-term solutions from a company like ours”
This investment comes at an opportune time as the federal moratorium on foreclosures put into place has expired.
“Many homeowners are unaware of just how resourceful their mortgage servicers should be. Instead of struggling to make payments and relying on temporary fixes, they could instead rely on sustainable long-term solutions from a company like ours,” said Valon Co-Founder and CEO, Andrew Wang.
“Amidst any mortgage crisis, the burden of navigating such a complicated world is on the borrower. The mortgage sector is frustrating and lacks clear guidance on how to access plans for repayment, reinstatement, deferral, or loan modification. As a result, many homeowners are at risk of losing their homes. But it doesn’t have to be that way. Valon’s software platform is designed to be intuitive and deliver a truly borrower-centric experience. Putting the homeowner first is the foundation of our technology. We offer a self-service interface that is transparent, accessible, and supported by expert customer service. This way, all the resources you need are right at your fingertips.”
Over the last nine months, Valon has been developing strategic partnerships and securing approvals from government sponsored enterprises (GSE) to service federally backed residential loans. Milestones include:
- Approval to service mortgages backed by Freddie Mac, the federal home loan mortgage corporation and FHA, the Federal Housing Administration
- New and continued partnerships with NRZ, a publicly-traded mortgage real estate investment trust, Freedom Mortgage, Starwood Capital, and Seneca Mortgage Servicing, a GSE-approved mortgage servicer
- Approximately 20,000+ consumers and $6 billion in mortgages being serviced on the Valon platform by year end
With its prior approval by Fannie Mae to service its government sponsored home loans, Valon has become the first fintech mortgage servicer to be approved by all GSEs.
“Valon is building a platform that offers a safe, intuitive way for consumers to be better informed about their mortgage,” said Leander McCormick-Goodhart, Vice President at Starwood Capital. “Automating many requirements of servicing a mortgage for disclosures, loss mitigation and payoff not only helps ensure borrowers are kept current, but also helps drive down servicing costs and increase engagement with consumers.”
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According to CoreLogic, more than 1.2 million U.S. homeowners reached the end of their forbearance assistance plan last month. “Like so many fintech giants that have revolutionized their industries, Valon has changed the game in Real Estate with a consumer first approach to keep the borrower better informed of their options as they navigate their homeownership journey. By aligning themselves with homeowners, they will build trust necessary for homeowners to partner with them in both good and bad times,” said Marcelo Claure, CEO of SoftBank Group International.
Founded in 2019, by Andrew Wang, Eric Chiang and Jon Hsu, Valon’s mission is to champion homeowners on their financial journey as the partner they trust with their home and their future. The company operates in all 49 U.S. states, with New York expected to close later this year. Valon’s employee base has grown 4x since the beginning of the year, with 100 current employees in its two locations: New York and Tempe, AZ. It plans to expand its workforce to 200 by 2022.
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