Valon raises $43.9 million
Valon Technologies, a tech-enabled residential mortgage servicer, announced a $43.9 million investment to continue fueling the company’s rapid growth through hiring, the development of loan originations and property insurance business, and potential future strategic acquisitions. The investment includes participation from an affiliate of Starwood Capital Group, an affiliate of Freedom Mortgage, Human Capital Management, and independent investor and CEO of SoftBank Group International Marcelo Claure, alongside previous investors Andreessen Horowitz, New Residential Investment Corporation, an affiliate of Fortress Investment Group LLC, and 166 2nd LLC. The deal follows a $50 million Series A round, closed in February 2021.
Founded in 2019, Valon operates in all 49 U.S. states, with New York expected to close later this year. The startup operates in the mortgage servicing space – the process of paying off one’s mortgage. Valon expects 20,000+ consumers and $6 billion in mortgages to be serviced on its platform by the end of the year.
“Many homeowners are unaware of just how resourceful their mortgage servicers should be. Instead of struggling to make payments and relying on temporary fixes, they could instead rely on sustainable long-term solutions from a company like ours. Amidst any mortgage crisis, the burden of navigating such a complicated world is on the borrower. The mortgage sector is frustrating and lacks clear guidance on how to access plans for repayment, reinstatement, deferral, or loan modification. As a result, many homeowners are at risk of losing their homes. But it doesn’t have to be that way. Valon’s software platform is designed to be intuitive and deliver a truly borrower-centric experience. Putting the homeowner first is the foundation of our technology. We offer a self-service interface that is transparent, accessible, and supported by expert customer service. This way, all the resources you need are right at your fingertips.” – Valon co-founder and CEO, Andrew Wang.
“Valon is building a platform that offers a safe, intuitive way for consumers to be better informed about their mortgage. Automating many requirements of servicing a mortgage for disclosures, loss mitigation and payoff not only helps ensure borrowers are kept current, but also helps drive down servicing costs and increase engagement with consumers.” – Leander McCormick-Goodhart, Vice President at Starwood Capital.
“Like so many fintech giants that have revolutionized their industries, Valon has changed the game in Real Estate with a consumer first approach to keep the borrower better informed of their options as they navigate their homeownership journey. By aligning themselves with homeowners, they will build trust necessary for homeowners to partner with them in both good and bad times.” – Marcelo Claure, CEO of SoftBank Group International.
