Illinois based lending platform MortgageHippo has raised $2.25 in Series Seed funding led by CMFG Ventures. MortgageHippo’s flagship product, Swift, is a white-label solution for lenders looking to offer mortgages online. Founded as a consumer-facing business in 2013, the company shifted its focus to white-label software in early 2016.
Co-founder and CEO Valentin Saportas said the company pivoted after seeing a “perfect storm” of market developments driving traditional mortgage providers to take a closer look at new technological solutions. “Millennials are finally coming into the market and that is incentivizing the use of technology,” he said. “You also see new regulation coming into the industry, and that’s eating away at profits, encouraging them to look at ways to automate and standardize the process to make it more efficient.” Moreover, said Saportas, the marketing efforts of digital-first mortgage providers has heightened awareness about the growing market segment of consumers and brick-and-mortar lenders alike.