Our Investment in Willow Servicing

We’re excited to announce our investment in Willow Servicing, a mortgage servicing software platform founded by Laura Cain and Teddy Coleman. Willow Servicing was founded in 2021 with the vision of modernizing the core technology that orchestrates the collection of $18 trillion of U.S. mortgage debt. Willow has built an automated servicing toolset that allows small and large servicers alike to efficiently service their loans in-house. We’re joined by several great investors in this round including Zigg Capital, Global Asset Capital, The Mortgage Collaborative, and Webb Investment Network.

Why Mortgage Servicing and Why Willow?

The mortgage industry has faced several headwinds this year — rising interest rates, limited housing supply, and record-high home prices impacting affordability. After two record-setting years of loan origination volume, the mortgage industry is contracting, sharply. The industry is now struggling with the perfect storm of lower volume, lower revenues, and higher costs per loan, which all impact lender profitability. Non-bank mortgage lenders on average lost $82 per loan in Q2 2022, according to the Mortgage Bankers Association.

Somewhat counterintuitively, we believe this is the best time to be building a mortgage technology business. As margins compress in the current environment, we expect there to be added focus from mortgage originators on finding ways to drive differentiation and operational efficiency. To survive, lenders must do more with less resources, and they will turn to technology partners that enable automation, delight customers and drive down cost — a true win, win, win. We believe Willow does just (Read more...)