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Vesta raises $30M to bring swarms of agents to mortgage lenders

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Vesta raises $30M to bring swarms of agents to mortgage lenders

Vesta, an AI-native software startup that helps lenders originate mortgages, announced on Thursday that it raised a $30 million round led by Conversion Capital.

The startup uses AI agents to automate much of the loan origination process, which, the founders say, helps lenders reduce the time and costs of processing mortgages. Three of the company’s customers, including Pennymac and New American Funding, also invested in the round alongside Citi Ventures and Andreessen Horowitz.

Mike Yu co-founded the company in 2020 with Devon Yang. Yu, the company’s CEO, told TechCrunch that now was the perfect time to raise because demand for the product has “exploded in the last year.” He said revenue is up 12x year over year and that the company has helped originate more than $100 billion a year in loans for lenders. The company has raised $85 million in funding to date.

“While the traction is great, we are still under 5% market share and now is the time to staff up, take the market, and invest in new product lines,” Yu said.

Those new product lines include a personal assistant for mortgage issuers that can help perform tasks and track workflows. It takes around 40 days to close a mortgage in the U.S., costing around $11,000 per loan. “Most of that cost is human labor, and a major bottleneck in the timeline is just waiting for a person to get to reviewing your loan.” 

With Vesta, the idea is to allow humans to deploy a swarm of agents to speed completion of tasks.


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