Tomo Mortgage raises $20 million
Digital mortgage lender Tomo announced that it closed its $20 million Series B financing round, bringing its total investment to date to $130 million. Progressive, Ribbit Capital, NFX, and DST Global Partners participated in the funding round.
Founded in 2020 by former Zillow execs, Tomo, which operates in 31 states, claims to saves the typical homebuyer $4,000 at closing and its interest rates are, on average, 0.50% lower than the industry and up to 1% lower than some of the biggest lenders.
Tomo will use the latest funding to support growth across its team and product offerings. The company is rapidly hiring loan officers and other mortgage professionals for its Detroit, Seattle and New York offices to meet “the surge of new demand,” and will be shifting its headquarters from Stamford, CT to New York City.
“Outdated business practices, excessive fees, and over-inflated interest rates cost U.S. homebuyers billions of dollars every year. Tomo is on a mission to change that. We use AI to deliver low rates without the gotchas. No mystery fees. No missed closing dates. No ‘rate-keeping,’ where you have to talk to a salesperson before getting a price. People love our honest, upfront pricing and seamless customer experience. We’re thrilled our investors recognize our unique vision and value.” – Greg Schwartz, CEO and Co-Founder of Tomo.
“While other mortgage lenders tout ‘automation,’ facilitated by way of call centers or outsourced service providers, Tomo is the real deal. They’re taking a radically different approach, using proprietary technology to cut out origination fees and processing delays in a way that we’ve not seen in the industry so far. We’re thrilled to back Tomo as they enter the next phase of their growth.” – Pete Flint, general partner at NFX.
“We’re excited to invest in Tomo and to support their mission to modernize the home buying experience. Our forward-thinking approach and dedication to being there for our customers by understanding their specific needs aligns with Tomo’s focus on innovation and helping each individual customer achieve their homeownership dreams.” – Erwin Raeth, Corporate Development Leader at Progressive.
