The US-based firm has secured the cash in a Series B round from the investment bank as well as venture capital funds Kleiner Perkins and Pine Brook.
Better Mortgage, an online lending platform specialising in residential mortgage lending, has closed its latest round of funding with plans to use the new capital to launch an expansion of its home purchase finance product.
Better Mortgage operates in California, New Jersey, North Carolina, Pennsylvania, Washington, Oregon, Connecticut, Illinois and Washington D.C., and plans to continue expanding its geographic footprint in 2017. In June 2016 ‘Better’ as it isn also known announced a $30m Series A investment round led by Goldman Sachs, Pine Brook, KCK Group, 1/0 Capital and IA Ventures.
Since launch in January 2016, the platform has funded over $500m in loans by tapping into what it says is an underserved consumer demand for simpler and more affordable home finance.
Vishal Garg, founder and CEO of Better, says the firm’s half a billion dollars of loans originated in its first year is more than any other fintech start up in its initial year of launch.
Consumers can get rate quoted within seconds, the firm said a statement, and get approved and lock a rate in minutes, 24 hours a day, without ever speaking to a broker. It ads that the “thousands of dollars in savings from digitization” is then passed onto the consumer, in the form of better rates and better process and service.
“Better is a breakthrough for consumers in the mortgage market,” said Noah Knauf, General Partner at Kleiner Perkins, the venture capital firm that invested in tech greats Amazon and Google. “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.”