Button Finance, a financial technology (fintech) mortgage lender focused on home equity loans, has closed a $2 million seed raise.
The amount will help the company hire talent and further develop its proprietary technology. Entities advised by Hildene Capital Management, LLC, a $13 billion structured credit focused asset manager based in Stamford, Conn., participated in the seed funding round, Button stated in a release. Hildene also was joined by L&L Capital Partners and angel investors from the New York fintech ecosystem.
“Demand was strong for the round, and we were oversubscribed and happy with our new partners,” Button Finance CEO Jason Harris said. “This last year has been challenging for everyone; however, American homeowners now have more untapped equity than ever before, given the recent home price rally. Button Finance’s products empower borrowers to access their home equity, pay down high-interest debt, and make value-enhancing renovations to their homes.”
Button Finance helps homeowners borrow against their home equity through a “hassle-free” online process that delivers quick decisions and funding in as little as five days, the company stated. It has built an artificial intelligence-powered underwriting platform that enables Button Finance to lend to borrowers who are underserved by traditional lenders. The fintech plans to expand beyond home equity loans and into a broader range of loan products over the next two years.
“The traditional players in the mortgage industry have been slow to adopt new technology and innovative underwriting,” Hildene Capital Management co-Chief-Information-Officer Dushyant Mehra said. “The Button Finance team spotted a gap in the market, and they built a robust underwriting model to address it, leading to higher risk-adjusted yields. We are excited to be working with Button as they continue to build their unique origination platform.”
Button Finance also announced it hired Josh Hager, a professional with over 20 years of experience in the mortgage industry, to oversee its mortgage operations. Hager has previously served in department head roles at fintech mortgage originators including Better.com, Homeward, and Divvy Homes.