Mortgage-as-a-service provider Pylon has raised $8.5 million in seed funding for the development of its embedded mortgage infrastructure platform, the company announced in a press release.
Funding is led by Conversion Capital with participation from Fifth Wall, Peter Thiel, and QED Investors, among others.
Zillow, Blend, Ramp, SoFi, and Figure offered additional funds as angel investors.
“Mortgages are rapidly becoming commoditized across rates, loan products, and operations as indicated by the nearly identical rates amongst the top 10 lenders,” said Pylon co-founder Trent Hedge.
“We are long overdue for the infrastructure layer that standardizes these commodities through software – allowing our customers to focus on building highly differentiated, revenue-generating mortgage offerings at a fraction of the time and cost.”
Pylon offers a unified stack from software to compliance and capital markets that would allow clients to launch new mortgage products at scale. This includes:
- End-to-End White Labeling to deliver an on-brand, in-product experience using pre-built UI components, a borrower communications engine, and an authentication layer
- Flexible API & Integrations to design custom interfaces, pre-fill loan applications, instantly verify income, assets, pull credit, and more
- Table Funding & Capital Markets provide a best-in-class capital market stack and a variety of loan products at competitive rates with pre-arranged debt capital
- Underwriting Logic Built-In to deliver quick and accurate decisions to borrowers with a credit decisioning engine, maximum affordability approvals, automated tasking, and more
- Regulatory Compliance & Lending Support by a team of experts to simplify set up and provide ongoing maintenance along with borrower assistance
The company says its product will allow fintechs, proptechs, banks, and retail brands to build mortgage lending into products over the course of weeks rather than years.
“The Pylon platform unlocks enormous enterprise value and access to the largest asset class in North America. The building blocks and technology now exist to offer the first fully embeddable mortgage product for enterprise companies and their customers,” said Christian Lawless of Conversion Capital.
“The complexity of the buildout is only possible due to the exceptional technical expertise and vision of the team, which are leveraging decades of innovation in infrastructure technology alongside platform integration and buy-in from some of the largest institutional banks and lenders.”