Maxwell, a digital mortgage and fulfilment platform for small to midsize mortgage lenders, has raised $16.3 million in Series B funding. Fin VC and TTV Capital led the round.
DENVER, Colorado. March 25th, 2021 — Maxwell, a digital mortgage and fulfilment platform for small to midsize mortgage lenders, has raised a $16.3 million Series B funding round led by Fin VC and TTV Capital. Rotor Capital, The Mortgage Collaborative Emerging Technology Fund, and existing investors including Anthemis Group, Route 66 Ventures, and Sovereign’s Capital also participated in the round. Maxwell has raised over $20 million in eight months after a $5 million Series A funding round in June 2020.
Maxwell uses AI to streamline and accelerate the mortgage process for community lenders and their borrowers. Their AI automation, built on aggregated loan data from its network, and real-time data insights, offload the manual tasks for loan officers, processors and underwriters of processing and underwriting to streamline the process. Loans on the platform close more than 50% faster than the national average.
Loan fulfillment accounts for 50% of mortgage costs. Since the 2008 mortgage crisis, most new digital entrants focus on the application process. Maxwell helps more than 250 community lenders nationwide overcome the costs and challenges of the entire mortgage transaction, enabling their sales teams to outproduce the market by 20% each month and to enhance the borrower and real estate agent partner experience.
John Paasonen, Maxwell Co-founder and CEO said, “Community lenders are uniquely positioned for growth by delivering superior and tailored lending products to their markets. These lenders excel in their local knowledge, local relationships, and local relevance—strengths that will serve them well as Gen Xers and millennials seek homeownership in high numbers. As markets shift and borrower expectations change, Maxwell will continue to simplify and modernize the mortgage process for community lenders who impact the lives of homebuyers and homeowners across the United States, and ensure lenders on its platform are poised to be the most competitive in their market.”
“Maxwell has developed a breakthrough SaaS platform aimed at a fast-growing segment of the mortgage market,” said Peter Ackerson, General Partner at Fin VC. “From our investments in SoFi and Figure, we’ve seen first hand the impact modern industry leading technology capabilities and innovative business models can have on complex markets that are eager for change. As Maxwell continues to grow at a breakneck pace, they’ll continue to lead the innovation roadmap for the community lenders in their network, whether they do $50 million or $5 billion a year.”
Founded in 2016, Maxwell has facilitated over $100 billion in loan volume to-date through its platform. In 2020, the company grew its team to over 200 employees and surpassed $6 billion in monthly loan volume on its platform.
Notably, this funding represents the first strategic investment from The Mortgage Collaborative’s new venture capital fund, TMC Emerging Technology Fund LP, which aims to capture opportunities driven by rapid technological change in the mortgage sector. The Limited Partners of this Fund are comprised of many of the most tech-forward lender members of TMC. With this investment, these lender members are signaling their support of Maxwell and their desire to assist Maxwell’s management team realize their commercial objectives.
Maxwell will use the additional capital to accelerate product development, market penetration, and product and engineering recruitment to meet market demand for technology solutions that enable community lenders to achieve economies of scale to compete in the active mortgage lending market.
Maxwell empowers mortgage lenders to enhance borrower experience, increase efficiency, and improve their economics by intelligently automating workflow through its digital platform and technology-powered services. Hundreds of mortgage lenders, banks, and credit unions nationwide use the Maxwell platform to serve thousands of homebuyers every day. Founded in 2015, Maxwell is a member of the Mortgage Bankers Association and is proud to be built in Denver, Colorado. Since 2017, it has been named one of the most innovative companies in real estate by HousingWire Magazine.