Lower, a multichannel mortgage lender, has recently acquired Neat Labs, a software company, with the goal of transforming its point-of-sale technology into a comprehensive application-to-funding mortgage platform. This strategic move is aimed at reducing reliance on third-party vendors in order to streamline operations and enhance efficiency.
The acquisition, which was finalized in December, was a stock-based deal, although specific financial details were not disclosed. Lower’s CEO, Dan Snyder, highlighted the importance of Neat Labs’ advanced technology in the mortgage origination process, emphasizing the integration of their point-of-sale system, loan origination system, and pricing engine into Lower’s proprietary system, LowerOS.
This integration is expected to significantly reduce loan origination costs, expedite the loan approval process, and improve overall operational efficiency. Lower plans to transition the majority of its loan origination processes to the new platform by the end of 2025, with the goal of processing 90% of its loans through the integrated system.
Neat Labs, which was founded in 2015 and has received significant funding from Forecast Labs and Left Lane Capital, brings a wealth of experience and expertise in the mortgage technology space. The company has successfully originated over $1 billion in loans before pivoting its focus to technology development.
As part of the acquisition, Neat Labs’ co-founder, Steve Herschleb, will join Lower as the chief technology officer, along with several engineers from his team. Herschleb’s experience in product development and technology innovation will be instrumental in enhancing Lower’s mortgage platform and improving the overall borrower experience.
Lower’s recent acquisitions, including Texas-based Thrive Mortgage and Denver-based Universal Lending, reflect the company’s commitment to growth and innovation in the mortgage lending industry. With a projected growth rate of 40% to 50% in 2025, Lower is focused on driving same-store sales growth and maintaining its position as a leader in the U.S. home lending market.
While Lower is not actively seeking further acquisitions at this time, the company remains open to opportunities that align with its strategic objectives. With a strong cash position and a focus on profitability, Lower is well-positioned for continued success in the competitive mortgage lending landscape.