The Mortgage Collaborative, the nation’s largest independent cooperative network serving the mortgage industry, announced that the TMC Emerging Technology Fund LP (the “Fund”) recently led a pre-Series A investment round in Home Lending Pal. Home Lending Pal is a technology-enabled marketplace that focuses on fair lending practices by using artificial intelligence and distributed ledger technology to turn a complex home research and origination process into an easy online shopping experience for both qualified and unqualified borrowers. Home Lending Pal’s platform assists consumers, particularly minorities and millennials, to assess their financial ability to take on a mortgage. It also guides them to take actions to improve their access to mortgage financing and select mortgage originators with whom they want to share their application information based on an AI algorithm that predicts probability to close.
The Co-founders of Home Lending Pal are excited by the unique access the Fund provides to prominent lenders in the mortgage industry. Bryan Young, Co-founder and CEO of Home Lending Pal, commented: “The Mortgage Collaborative understands that progressive approaches to addressing fair lending and bridging the homeownership gap are needed. TMC’s network will be vital in helping HLP build a process that de-identifies HMDA data until after the underwriting decision is made. This revolutionary technology allows underwriting data to be digitally validated while using a single upload of documentation to enable multiple lenders across the country to determine if they will work with the borrower without human biases from the upfront disclosure of age, sex, or race.”
“The Mortgage Collaborative understood that financial inclusion must start with equal access, borrower data empowerment, and personalized education without sales pressure,” said Steven Better, Co-founder and COO of Home Lending Pal. “HLP reduces origination friction for qualified borrowers and allows personalized roadmaps for unqualified borrowers to become qualified. I am excited to work with TMC to modernize the process by emphasizing fair lending and putting people first.”
Jonathan Freed, Managing Partner of Holland Mortgage Advisors and one of the Fund’s participating Limited Partners, is excited by the work Home Lending Pal is doing for fair lending. “The mortgage industry is embracing the idea of providing educational financial resources to consumers long before they begin their homebuying journey and seek out lenders for financing options. Home Lending Pal exemplifies this concept by providing a much-needed solution to a pervasive issue. We are excited by HLP’s cutting edge technology and the opportunity to collaborate with their forward-thinking team to improve access to home financing solutions by all consumers.”
Orlando-based Angel Syndicate Bluewave Investment Partners, CUNA Mutual, Dallas Cowboys linebacker Jaylon Smith, and CMFG Ventures Discovery Fund are other notable investors who joined the round.
The Limited Partners of the TMC Emerging Technology Fund consist of some of the most technology-forward lender members of TMC who evaluate and invest in companies looking to advance the mortgage industry. The Fund continues to look for investment opportunities that will result in higher profitability and business process improvement for TMC lender members.
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