Valon (formerly known as Peach Street), a NYC-based tech-enabled residential mortgage provider, raised $50m in Series A funding.
The round, which brought total funding raised to date to over $53m, was led by Andreessen Horowitz, with participation from prior investors Jefferies Financial Group, New Residential Investment Corporation, an affiliate of Fortress Investment Group LLC, and 166 2nd LLC. Andreessen Horowitz’s General Partner, Angela Strange, and Blend President and ex-Fannie Mae CEO Tim Mayopoulos have joined Valon’s Board of Directors.
The company intends to use the funds to accelerate growth through hiring and building out operations for acquiring more Mortgage Servicing Rights (MSR).
Founded in 2019, by Andrew Wang, Eric Chiang and Jon Hsu, Valon provides a stack that gives both borrowers and lenders real time visibility into their loans. The software platform delivers 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. The cloud-native platform is built on Google Cloud with security as a first-principle, protecting borrowers with features such as default encryption and intrusion detection.
The deal closed as the company obtained approval by Fannie Mae to service its government sponsored home loans. With the approval, Valon can service agency-backed residential mortgages in 49 states, with New York expected to be added to the portfolio this year.