Beeline, a digital mortgage lender that accesses bank, income and tax information online to provide “purchase-ready approvals” in 15 minutes, has completed a Series A funding round that brings the total raised to date to $22 million.
Providence, Rhode Island-based Beeline says it’s closed nearly $500 million in mortgages since launching in June 2020, and is currently licensed in 25 states and Washington, D.C.
The amount raised in the latest round of financing was not disclosed, but previous regulatory filings detail $19.5 million raised in four offerings from November 2019 through October 2021.
The latest round was led by the Cavalry Fund, with participation from strategic co-investors Atalaya Capital Management, Ellington Financial Inc., and Australia-based Pipeline Capital.
“We’re thrilled to welcome our new equity partners, who are aligned with our vision of using automation to disrupt the housing industry and revolutionize how people get mortgages,” said Beeline cofounder and President Peter Gonzalez, in a statement. “This transaction positions Beeline to provide consumers with a home financing experience that surpasses all other currently available options.”
Beeline — which also provides leads to Realtors who sign up to receive them — says its “purchase-ready approvals” are more reliable and accurate than traditional pre-approvals that depend on information provided by borrowers.
After obtaining the borrower’s permission, Beeline’s automation platform accesses their bank, income and tax information online, and verifies the numbers before processing and resolving underwriting conditions to provide decisions in real time.
More than 95 percent of customers who are provided automated mortgage decisions are ultimately approved, the company says.
Beeline says its streamlined process allows it to offer lower interest rates and closing costs, a claim it backs up with a “Beeline Price Pact.” If Beeline decides that it can’t beat a competitor’s rate, it promises to pay half of the borrower’s first monthly mortgage payment with the other lender.
Borrowers in Rhode Island, Massachusetts and Texas can also obtain title and escrow services from affiliated businesses including Beeline Title LLC and Beeline Settlement Services LLC. Beeline is the “doing business name” of Beeline Loans Inc., a subsidiary of Beeline Financial Holdings Inc.