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After a year of explosive growth,Tomo, a fintech startup co-founded by former Zillow executives, now backed by Progressive Insurance, Ribbit Capital, NFX, and DST Global Partners<\/em><\/p>\n\n\n\n <\/p>\n\n\n\n Tomo\u2019s \u201clow rates, no gotchas\u201d uses AI to lower mortgage interest rates by 0.50%, saving the typical homebuyer $4,000 at closing<\/em><\/p>\n\n\n\n <\/p>\n\n\n\n NEW YORK, NY, March 11, 2025 \u2014 Tomo Mortgage<\/a>, the fast-growing digital mortgage lender, today announced that it closed its $20 million Series B financing round, bringing its total investment to date to $130 million. In addition to new investor Progressive Insurance, existing investors Ribbit Capital, NFX, and DST Global Partners also participated in the latest round.<\/p>\n\n\n\n <\/p>\n\n\n\n \u201cOutdated business practices, excessive fees, and over-inflated interest rates cost U.S. homebuyers billions of dollars every year. Tomo is on a mission to change that,\u201d explains Greg Schwartz, CEO and Co-Founder of Tomo. \u201cWe use AI to deliver low rates without the gotchas. No mystery fees. No missed closing dates. No \u2018rate-keeping,\u2019 where you have to talk to a salesperson before getting a price. People love our honest, upfront pricing and seamless customer experience. We\u2019re thrilled our investors recognize our unique vision and value.\u201d <\/p>\n\n\n\n <\/p>\n\n\n\n Key to Tomo\u2019s success is its use of AI to streamline sales and underwriting processes. These tools make getting a mortgage much faster, more accurate, and far less expensive than at other mortgage lenders. Tomo saves the typical homebuyer $4,000 at closing and its interest rates<\/a> are, on average, 0.50% lower than the industry and up to 1% lower than some of the biggest lenders. And this mix of transparency, simplicity, and cost-savings drives 4.9-star customer reviews on Bankrate, as well as their editor\u2019s pick of \u201cBest Online Mortgage Lenders in 2025.\u201d<\/p>\n\n\n\n <\/p>\n\n\n\n Despite a stagnant mortgage industry in 2024, Tomo achieved 3.5x growth and is on track to be one of the largest mortgage companies in the U.S. Now operating in 31 states, including D.C., Tomo\u2019s December 2024 purchase unit volume ranked in the top 10% of all mortgage lenders nationally. <\/p>\n\n\n\n <\/p>\n\n\n\n Tomo will use the latest funding to support growth across its team and product offerings. The company is rapidly hiring loan officers and other mortgage professionals for its Detroit, Seattle and New York offices to meet the surge of new demand, and will be shifting its headquarters from Stamford, CT to New York City.<\/p>\n\n\n\n <\/p>\n\n\n\n \u201cWhile other mortgage lenders tout \u2018automation,\u2019 facilitated by way of call centers or outsourced service providers, Tomo is the real deal. They\u2019re taking a radically different approach, using proprietary technology to cut out origination fees and processing delays in a way that we\u2019ve not seen in the industry so far. We\u2019re thrilled to back Tomo as they enter the next phase of their growth,\u201d said Pete Flint, general partner at NFX.<\/p>\n\n\n\n <\/p>\n\n\n\n \u201cWe\u2019re excited to invest in Tomo and to support their mission to modernize the home buying experience,\u201d said Erwin Raeth, Corporate Development Leader at Progressive. \u201cOur forward-thinking approach and dedication to being there for our customers by understanding their specific needs aligns with Tomo\u2019s focus on innovation and helping each individual customer achieve their homeownership dreams.\u201d<\/p>\n\n\n\n To learn more about Tomo, please visit https:\/\/tomo.com\/<\/a>. <\/p>\n\n\n\n <\/p>\n\n\n