Digital mortgage lender raises $22 million since launch — combines automation and AI to produce unprecedented ease and lower costs to buy or refinance a home
December 8, 2021–PROVIDENCE, R.I.–Beeline, a digital start-up mortgage lender that provides the shortest path to homeownership, has completed a Series A round of financing for an undisclosed amount. The capital will be invested in automation and artificial intelligence (AI) to provide a totally unprecedented user experience (UX) for borrowers.
The round of financing was led by the Cavalry Fund and included participation from strategic co-investors Atalaya Capital Management, Ellington Financial Inc., and Australia-based Pipeline Capital. The latest transaction brings the total capital raised by Beeline to $22 million.
“We’re thrilled to welcome our new equity partners, who are aligned with our vision of using automation to disrupt the housing industry and revolutionize how people get mortgages,” said Beeline President and Co-Founder Peter Gonzalez. “This transaction positions Beeline to provide consumers with a home financing experience that surpasses all other currently available options.”
The new funding will accelerate development of Beeline’s groundbreaking mortgage automation platform, which identifies, processes, and resolves underwriting conditions in real-time so borrowers can instantly know if they are pre-approved for a loan.
Beeline launched in June 2020 and has already closed nearly $500 million in mortgages. The company is currently licensed in 26 states and plans to add more.
In just 15 minutes, Beeline gives borrowers “Purchase-Ready Approvals,” day or night, by using a borrower’s exact financial information and predictive analytics rather than relying solely on information that borrowers declare, as traditional pre-approvals do. With the borrower’s consent, Beeline securely accesses their bank, income, and tax information online, verifies the numbers instantly, and provides a reliable, accurate approval upfront, so borrowers are far less likely to encounter roadblocks or be disappointed later.
Beeline borrowers can then choose a customizable loan option and lock their mortgage rate all in one session, from the comfort of their sofa, without having to talk to their Beeline Loan Guide, who is always on-hand if needed.
Currently, over 95% of Beeline’s customers who receive automated mortgage decisions are ultimately approved during the underwriting process. This high level of automation and accuracy reduces Beeline’s origination costs, which enables the company to offer more attractive pricing compared to other lenders.
“This is the classic example of David up against the Goliaths of the mortgage industry,” said Greg Ellis, chief brand officer and co-founder of Beeline. “Our unique, mobile-first platform combines automation, AI, and a simple UX in new ways to free people from the usual back-and-forth loan process B.S., so they can celebrate the thrill of buying a home or the benefits of a refinance as quickly as possible.”
“Beeline’s tech platform delights customers by streamlining the process to arrive quickly at their end goal, whether it’s buying their dream home, doing a refinance, or buying an investment property,” said Gonzalez. “It is also built to lower the cost of creating a mortgage, so we need fewer employees per loan than traditional lenders — and our borrowers benefit from that in lower rates and costs.”