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Digital mortgage servicer Valon<\/strong> (formerly known as Peach Street<\/strong>) announced on Tuesday it picked up $50 million in a Series A funding round spearheaded by venture capital heavyweight Andreessen Horowitz.<\/strong> <\/p>\n Valon now boasts $53 million in total funding to date, and it is aiming its sights on industry giant Black Knight.<\/p>\n Others participating in this round included previous investors Jefferies Financial Group<\/strong>, New Residential Investment<\/strong> and an affiliate of Fortress Investment Group<\/strong>. Repeat investor 166 2nd<\/strong>, the family office of Adam Neumann, co-founder of WeWork<\/strong>, also contributed to the latest round.<\/p>\n Founded in 2019 and marketed as a mobile-friendly servicer, Valon allows borrowers to make payments, view balances, request information and manage escrows through its cloud-based platform. It also allows lenders to request API data feeds and view borrow performance.<\/p>\n The software is built on Kubernetes, an open-source automation platform designed by Google<\/strong> and a familiar program to Valon co-founders Andrew Wang and Eric Chiang, who had both previously worked<\/a> for the internet search giant. Third co-founder Jon Hsu is also familiar with cloud-based development having worked for Twilio,<\/strong> a cloud-based communication platform.<\/p>\n According to a spokesperson for Valon, the company operates as a competitor to tech giant Black Knight<\/strong>, whose technology is used by the servicers of roughly half of all U.S. residential loans.<\/p>\n \u201cWe\u2019re on the cusp of a mortgage foreclosure crisis comparable to 2008, and the majority of homeowners struggling to make their loan payments are unaware of their options,\u201d said Wang. <\/p>\n \u201cCurrently, the largest mortgage servicing software controls more than half of all U.S. residential loans, effectively creating a monopoly in the market. This stranglehold has driven servicing costs up nearly 250% in the past decade, and the fees are passed on directly to the borrower,” Wang said.<\/p>\n Black Knight is a formidable foe \u2013 it has been scooping up companies for months now – acquiring Optimal Blue, <\/strong><\/a>DocVerify<\/strong><\/a> and Collateral Analytics<\/a><\/strong> in a bid to dominate the servicing tech space. <\/p>\n Alongside its funding round announcement, Valon also revealed that it had been approved by Fannie Mae<\/strong> to service its government sponsored home loans. Fannie and Freddie Mac<\/strong> currently support about half the U.S. mortgage market. <\/p>\n \u201cThe Fannie Mae approval only serves as further validation of the platform the team has created – it meets regulations, and brings a step-function improvement for consumers, for mortgage originators and investors alike,” said Angela Strange, a general partner at a16z. <\/p>\n In concert with the fundraise, Strange and ex-Fannie Mae CEO and Blend<\/strong> President Tim Mayopoulos joined Valon\u2019s board of directors.<\/p>\n Valon claims it has received commitments for an estimated $10 billion in servicing volumes in 2021. The company operates in 49 states, with New York expected to be added this year.<\/p>\n According to the release, Valon’s latest raise will be used to ramp up hiring and build out its operations to acquiring more Mortgage Servicing Rights.<\/p>\n Lead investor Andreessen Horowitz has made big bets on housing-related startups before. It’s a big investor in proptech giants like AirBnB<\/strong> and Flyhomes<\/strong> and smaller startups like Brazil-based housing marketplace Loft<\/strong>.<\/p>\n The post Digital servicer Valon snaps up $50M in Series A round<\/a> appeared first on HousingWire<\/a>.<\/p>\n