Exclusive: Lower acquires software company Neat Labs
Multi-channel mortgage lender Down there is a software company Neat Labs transform point-of-sale technology from a fully integrated application into a mortgage financing platform with the goal of reducing reliance on third-party vendors.
The stock-based deal was completed in December, although financial details were not disclosed.
“It's very difficult to build this technology from scratch,” Lower's CEO and co-founder said in an interview about the deal. “Tidy Labs created an all-integrated point of sale, a full credit origination system, and a full pricing engine.”
Lower plans to integrate Neat's cloud-based, end-to-end mortgage origination platform into LowerOS, a proprietary system that currently serves as a point of sale.
The move reflects a broader trend among mortgage lenders seeking innovative technology solutions to reduce reliance on third-party vendors and reduce the cost of lending in a highly competitive market.
Snyder said the integration is expected to lower loan origination costs by at least 20%, allow Lower to recoup its acquisition costs within the first year and cut loan delivery times from 21 days to just 10 days.
While Lower will continue to use some vendors for niche products and apps, Snyder added that the company aims to process 90% of its loans through the platform by the end of 2025.
Both web-based and mobile-optimized, the new platform allows multiple users to collaborate on the same loan at the same time, Snyder said. It aligns with the company's three main goals: to accelerate speed, reduce costs, and provide guidance for consumers and creators.
Founded in 2015, Neat Labs has raised over $50 million in seven funding rounds. Forecasting laboratories and Left Lane Capitalaccording to the data.
Neat Labs raised more than $1 billion in loans before the boom, and increased market competition forced the company to pivot from the ground up and focus on its technology.
Neat Labs co-founder Steve Herschleb will join Lower as chief technology officer, along with about five engineers from his team. Herschleb previously served as chief product officer .
“With LowerOS, borrowers can get approved faster than they can today. It will make getting a mortgage feel more like a car loan or credit card,” Hershleb said in a statement.
Founded in 2014, Lower claims to be the 28th largest US home lender and is backed by Accel Partners, SoFi, and Veritex ban. In December 2023, the company Texas-based lender and the previous month in Denver Universal Credit He announced that he had become a lower division.
According to Snyder, Lower doubled its volume in 2024 and predicts 40% to 50% growth in 2025. The company's focus this year has been on same-store sales growth, with teams encouraged to outperform the market by 20%.
While Snyder said acquisitions are no longer a priority, he left the door open: “If there are good founders who want to grow into a bigger company, we'd certainly be interested. But we are not actively looking for acquisitions like last year.”
From Monday Nationwide Mortgage Licensing System (NMLS) Below reported 535 sponsored loan officers and 87 active affiliates. Snyder added that the company has returned to profitability and maintains a strong cash position.
