Lower will integrate Neat Labs’ technology into its own cloud-based origination platform and bring on co-founder Steve Herschleb as chief technology officer, executives announced Tuesday.
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Fintech mortgage lender Lower is investing in its technology through the acquisition of loan origination software provider NEET Labs, under undisclosed terms.
Lower announced Tuesday that it has integrated Neat Labs’ software into its cloud-based mortgage platform, LowerOS, and that Neat Capital co-founder and chief technology officer Steve Hirschlev has joined Lower as CTO.
Founded in 2017 in Boulder, Colo. by Hirschlev and CEO Luke Johnson, NEET Capital previously operated its lending business through its subsidiary NEET Loans, providing banks with a loan origination system as a white-label solution. was also provided.
In announcing its 2022 Series B-1 funding round, NEET Capital announced it had raised more than $40 million from investors. The company said it originated more than $1 billion in mortgages before switching gears to focus on loan origination software.
Dan Snyder
“We are thrilled to welcome Neat Labs to the Lower family,” Lower CEO Dan Snyder said in a statement. “Their technology is the foundation of our next chapter.”
Lower said Hirschlev, who previously served as chief product officer at mortgage technology provider Maxwell, will play a “key role” in developing LowerOS, the company’s cloud-based mortgage platform. said.
Steve Hershlev
“LowerOS helps consumers use their home equity to pay for major life events like debt consolidation or overdue home renovations, whether they’re buying a new home or refinancing to lower their monthly payments. It will change the way consumers think about mortgage borrowing, even when they take advantage of it,” Hirschlev said in a statement.
LowerOS “makes getting a mortgage feel like a car loan or a credit card,” he said.
In announcing the deal, Lower said LowerOS will provide borrowers with “self-service access” to Neat Labs’ underwriting engine, “enabling consumers to choose the best loan product and payment plan that’s right for them. ” said the plan.
LowerOS “also automates many of the time-consuming tasks in the mortgage loan process, reducing the time and cost for borrowers to get a loan, and LowerOS’ nationwide network of loan officers has more time to guide each customer. It gives you more time to spend,” Lower said.
Decrease in growth rate due to acquisitions
Columbus, Ohio-based Lower claims to be the nation’s 28th largest mortgage lender, backed by Accel Partners, SoFi, Veritex Bank and others. According to records maintained by the Nationwide Multistate Licensing System, Lower LLC sponsors 533 mortgage originators working in 87 branches across the United States.
Last year, Veritex sold its interest in Texas-based Thrive Mortgage LLC to Lower in a cash and stock deal, giving it a 12.5% stake in Lower. Lowe says its store footprint has doubled.
The deal closes in March 2024, with Thrive CEO Selene Kellam joining Lower as chief operating officer and Thrive chief production officer Randell Gillespie assuming that role for Lower. Lower will continue to maintain the Thrive Mortgage brand as one of its “business activities” brands.
Lower, a group of companies under the Lower Holding Co. umbrella, traces its origins to 2014, when Mr. Snyder co-founded Homeside Financial, a Maryland-based mortgage lender and servicer.
The company accelerated its growth with the 2018 launch of Lower.com, which offers more streamlined digital processes, and a $100 million Series A funding round led by venture capital firm Accel in 2021. A licensing agreement with the Columbus Crew, a Major League Soccer team, allows the company to continue investing in technology and increasing its profile.
In 2023, Denver-based Universal Lending Home Loans became a division of Lower, with industry veteran TJ Kennedy overseeing production of retail and wholesale loans.
In addition to Lower.com, Homeside Financial, Thrive Mortgage, and Universal Lending Home Loans, Lower LLC trade names include Alderus Mortgage, AMSW Lending, Banner Mortgage, Community Lending, Fairfax Mortgage, First Trust Mortgage Company, Key Mortgage Group, and PowerPRO Mortgage, PowerTPO, Premier Nationwide Lending, True Lending, Vybe Mortgage, Yes Mortgage.
Lower also provides real estate brokerage services and homeowners insurance through Lower Realty LLC and Lower Insurance Services LLC.
MortgagePass, Lower’s “real estate agent agnostic” cash offer service, is powered by Homelight Home Loans.
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