Vesta Raises $30 Million to Expand AI Agent Platform for Mortgage Lenders
Vesta says revenue rose 12x year over year, but CEO Mike Yu estimates the AI mortgage startup still has under 5% market share. Its $30 million round, led by Conversion Capital, brings total funding to $85 million, with Pennymac and New American Funding participating.
Vesta, an AI-native startup that automates mortgage loan origination, announced in October 2026 that it has raised a $30 million funding round led by Conversion Capital. The company has now raised $85 million in total funding.
Three of Vesta’s existing customers — including Pennymac and New American Funding — participated in the round alongside Citi Ventures and Andreessen Horowitz. CEO Mike Yu co-founded the company in 2020 with Devon Yang.
Yu said demand for the product has “exploded in the last year,” with revenue up 12x year over year. Despite that growth, he noted the company holds under 5% market share. “Now is the time to staff up, take the market, and invest in new product lines,” Yu said.
Vesta’s platform lets lenders deploy AI agents to handle tasks across the loan origination process. Closing a mortgage in the U.S. currently takes around 40 days and costs approximately $11,000 per loan, with human labor accounting for much of that cost. Vesta’s agents are designed to reduce both the time and expense involved. Some lenders are using the agents to make mortgage underwriting decisions, though Yu noted that companies remain legally responsible for those decisions regardless of the AI tools used. All agent actions and reasoning are recorded for compliance and auditing purposes.
Customers typically start by having a human approve agent decisions before granting the software greater autonomy. Yu attributed recent capability gains to improvements in AI models, specifically citing Claude Sonnet 4.5 as a breakthrough for following complex, long-horizon instructions.
New product lines will include a personal assistant for mortgage issuers to help manage tasks and track workflows. Vesta competes against legacy mortgage technology platforms such as ICE Mortgage Technology and AI-native rivals including Xpanse. Yu argued that legacy systems were not built to support AI agents, making them difficult to adapt. “Our priority is earning the business of the rest of the mortgage industry,” he said.