Mortgage provider Valon raises $50 million in Series A

New York-based Valon Technologies , a tech-enabled residential mortgage servicer, announced it has raised $50 million in a Series A round led by Andreessen Horowitz. Since its inception in 2019, the company has raised over $53 million. The company also announced it obtained approval by Fannie Mae to service its government sponsored home loans. Andreessen Horowitz’s General Partner, Angela Strange, and Blend President and ex-Fannie Mae CEO Tim Mayopoulos have joined Valon’s Board of Directors.

“We’re on the cusp of a mortgage foreclosure crisis comparable to 2008, and the majority of homeowners struggling to make their loan payments are unaware of their options. Currently, the largest mortgage servicing software controls more than half of all U.S. residential loans, effectively creating a monopoly in the market. This stranglehold has driven servicing costs up nearly 250% in the past decade, and the fees are passed on directly to the borrower. We created Valon as a challenger brand to address the extreme need for an updated, technology-enabled alternative to keep the borrower better informed.” – Valon Co-Founder and CEO, Andrew Wang.

Valon’s software platform delivers a borrower-oriented experience: “a simple interface, transparent access to information, and expert customer service.” Borrowers have access to self-service features to access their mortgage information and manage their payments from wherever they are. Lenders can request access to real-time API data feeds to view performance of their borrowers and reconcile transaction data.

“Valon has built a mobile first mortgage servicer from the ground up. Homeowners are faced with clumsy websites, call centers, and often misinformation. In Valon, they have a trusted software driven advisor who can provide clear, transparent, regulatory compliant information in good times and bad – without needing to pick up the phone. The Fannie Mae approval only serves as further validation of the platform the team has created – it meets regulations, and brings a step-function improvement for consumers, for mortgage originators and investors alike.” – Angela Strange, General Partner at Andreessen Horowitz who joined the Valon Board of Directors in mid-2020.

Valon currently operates in 49 states, and New York is expected to be added this year.