Mortgage tech platform Haven raised $8 million in Series A funding to scale its mortgage servicing infrastructure, taking advantage of a higher-rate environment.
Fifth Wall led the funding with participation from Fidelity National Financial, RWT Horizons, and 1Sharpe Ventures as well as existing investors Conversion Capital, BoxGroup, AME Cloud Ventures and Operator Partners, the firm said Tuesday.
With the Series A funding, Haven, founded in 2020 by Nipun Kant and Jonathan Chao, raised $13.5 million to date. The capital will be used for hiring and accelerating product development, Haven said.
Integrated with subservicers, the tech firm provides a customizable platform for servicers to engage, educate and enroll borrowers into new products and services. Servicers can improve yields on their mortgage servicing rights (MSRs) with technology that enables their recapture and cross-sell strategy, the firm said.
“There’s a lot of businesses that want to reach homeowners but they’re a very difficult group to reach,” Jonathan Chao, CEO and co-founder at Haven, said. “If our platform does this job of connecting homeowners with solutions, we could be an avenue where a lot of business that might not have been able to exist, can.”
Subservicers can win more servicing deals by offering their clients recapture functionality, and lenders can ensure their LOs could find leads from their portfolio, according to the firm’s website.
Describing the current downmarket as a “unique time,” in which interest rates and home equity are at all-time highs, but foreclosure rates are at a record-low, Chao said “unlocking the hidden value in the servicing portfolio via revenue streams like cross-sell” has helped court more servicers to navigate the downmaket.
Haven’s platform enables mortgage servicers to advise on additional products including home insurance, second lien loans and solar services to help their clients reach homeowners since its inception, Chao said, adding the goal is to generate value for clients through an all-in-one hub for home finances.
“We were born in the refi age … but as the environment shifted (to a higher rate environment), we were lucky that we were already doing cross-sell products, such as home insurance, second lien, other products and services that help homeowners stay in their home,” he said.
While Chao declined to share the names of its clients, Haven and mortgage subservicer LoanCare partnered in May in hopes to increase recapture and cross-sell conversion.
The integration of LoanCare’s servicing platform with Haven’s software will enable clients to leverage these marketing capabilities with data-driven results, the firms said at the time of the announcement.
Haven claims to have cross-sell partners across four verticals, including home insurance, auto insurance, life insurance, and home equity lending and has integrated with six of the top 50 servicers in the U.S.