Tomo MortGage closes $ 20 million Series B Financing Round
Tomo praises his use of artificial intelligence in streamlining the insurance loan and closing processes. It claims to save the typical Homebuyer up to $ 4,000 in closing costs and offers interest rates that are 50 to 100 basic points lower than the industrial average, according to a press release.
The technology-driven approach of the company is attractive for investors.
“We are pleased to invest in Tomo and support their mission to modernize the home buying experience,” said Erwin Raeth, leader of business development at Progressive Insurance, in a statement. “Our progressive approach and dedication to be there for our customers by understanding their specific needs is in accordance with Tomo’s focus on innovation and helping each individual customer are home owner dreams.”
“While other mortgage lenders ‘automation’ prices, facilitated through call centers or outsourced service providers, Tomo is the real deal,” said Pete Flint, general partner at NFX. “They follow a radically different approach, using their own technology to lower origin costs and to process delays in a way that we have not seen in industry so far. We are very happy to support Tomo if they enter the next phase of their growth. “
New head office
In combination with the announcement of the financing, Tomo also said that it will move his head office from Stamford, Connecticut, to New York City. The company has a permit in 31 states and Washington, DC, and it has existing offices in Detroit and Seattle. It is planning to use the series B financing to support team and product growth by “aggressive hiring loan officials and other mortgage professionals”.
According to data from FashionxTomo did $ 404 million in loan volume for the 12 months that ended in January. The company said in the release that it achieved 250% growth last year.
In February 2024, the company launched a house search portal, Tomo real estate. Driven by Openi Technology, the Portal Tailors lists by the ownership specifications of a user.
In October 2024, Schwartz appeared on Power House Podcast from Housingwire to talk about the company’s AI-driven growth strategy.
“It’s not just about running volume or earning a money,” said Schwartz. “The people who come to work here understand that it is a startup. It will be a little less consistent every day because we invent and change day after day, but it is goal -oriented, and that makes my work easier because I anchor it to something bigger than me. “
