Vesta Secures $30M to Accelerate AI Agent Use in Mortgage Lending

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Vesta raised $30 million to expand its AI software that automates mortgage loan origination, aiming to cut processing time and costs for lenders.

Vesta, an AI-driven software startup specializing in mortgage loan origination, announced a $30 million funding round led by Conversion Capital. The company, founded in 2020 by Mike Yu and Devon Yang, uses swarms of AI agents to automate much of the loan origination workflow, helping lenders reduce time and expense. Customers in the round included Pennymac, New American Funding, Citi Ventures, and Andreessen Horowitz.

CEO Mike Yu explained that demand for Vesta's product has surged within the past year, with revenue growing twelvefold year over year. The company's platform currently supports the origination of over $100 billion in loans annually. Despite this traction, Vesta holds less than 5% of the mortgage technology market, prompting plans to increase staffing and develop new product lines.

Among upcoming products is a personal assistant tool designed for mortgage issuers to manage tasks and track workflows more efficiently. Given that the average U.S. mortgage takes around 40 days to close and costs about $11,000—with a major cost factor being labor—Vesta aims to expedite processes by deploying AI agents alongside human teams. Lenders can customize which tasks AI agents perform, gradually shifting more responsibilities, including underwriting decisions, to the AI while maintaining compliance and decision auditing.

Technological advances, particularly improvements in AI model reliability and instruction adherence seen with Claude Sonnet 4.5, have been crucial in enabling Vesta to handle the complex, multi-stage tasks involved in mortgage lending. Vesta distinguishes itself from legacy mortgage software providers, which are less compatible with AI agent integration, and competes with other AI-native startups like Xpanse.

Looking ahead, Vesta plans to continue growing its share of the mortgage technology market and adapt its offerings based on customer needs, aiming to streamline lending workflows across the industry.