Residential mortgage servicer Valon has scored $43.9m in new investment from a recent financing round.
The funding round included participation from affiliates from Starwood Capital and Freedom Mortgage, Human Capital Management and Marcelo Claure, who is CEO of SoftBank Group International. Andreessen Horowitz, New Residential Investment Corporation, 166 2nd and an affiliate of Fortress Investment Group also took part. Earlier this year, Valon collected $50m in its Series A round.
Founded in 2019, Valor has built a software platform that offers borrowers with transparent access to information to improve the mortgage process. Users can access their mortgage information and manage their payments from wherever they are, while lenders are able to access real-time API data feeds to view performance of their borrowers and reconcile transaction data.
The company currently operates in 49 US states and is expected to close its deal to operate in New York later this year. It claims it expects over 20,000 consumers and $6bn in mortgages to be serviced on its platform by the end of 2021.
Valor intends to use the newly raised capital to fuel its growth through hiring, the development of loan originations and property insurance business as well as for potential future strategic acquisitions.
Valon co-founder and CEO Andrew Wang said, “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. 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.”
SoftBank CEO Marcelo Claure added, “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.”
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