The Digital Mortgage is all the talk. The definition of Digital Mortgage varies, but what every lender really wants and needs at a minimum is a fully digital point-of-sale. One of the newer players in this space making a lot of waves is MortgageHippo, Inc. And to this end, this vendor has announced today that it has raised approximately $2.25 million in seed capital. The round was led by CMFG Ventures, LLC, the venture capital entity of CUNA Mutual Group.
“These are very exciting times for technology companies in the mortgage sector, as lenders of all types and sizes fully embrace the digital transformation sweeping through the industry,” said Michael Salichs, co-founder and President of MortgageHippo. “Several market forces over the last couple of years have pushed the mortgage industry towards digital innovation and MortgageHippo is helping lenders with the transition.”
Among those market forces is the arrival of Millennials into the housing market, support by the GSEs of digital technology in loan underwriting and the launch and heavy marketing of digital mortgage platforms by a handful of prominent lenders.
“The mortgage process can be cumbersome, leading to decreased customer satisfaction, inefficiency and higher origination costs,” said Brian Kaas, President and Managing Director of CMFG Ventures. “Our investment in MortgageHippo will bring new innovation to the digital mortgage experience that can help credit unions deliver a superior online mortgage experience to their members in a way they prefer to engage in the process.”
Since launching its digital mortgage platform – known as SwiftDLP™ – as a white-label solution, MortgageHippo has signed several top national and regional lenders and brokers who use the platform to deliver a modern borrowing experience to their customers and increase their conversions. “We are very excited about CMFG Ventures’ investment in our company and the strategic value and familiarity with the credit union market they bring to the table,” said Valentin Saportas, co-founder and CEO of MortgageHippo.
MortgageHippo raised an initial seed round of $750,000 in January 2016 led by the venture arm of real estate brokerage, @properties. Today’s announcement marks the official close to their seed round with an additional $1.5 million.