Multichannel mortgage lender Lower has acquired software company Neat Labs to transform its point-of-sale technology into a fully integrated application-to-funding mortgage platform, aiming to reduce reliance on third-party vendors.
The stock-based deal was finalized in December, though financial details were not disclosed.
“It’s very hard to build this technology from scratch,” Dan Snyder, CEO and co-founder of Lower, said in an interview about the deal. “Neat Labs built out a point-of-sale, a full loan origination system, and a full pricing engine, all integrated.”
Lower plans to integrate Neat’s cloud-based, end-to-end mortgage origination platform into its proprietary system, LowerOS, which currently serves as a point-of-sale product.
The move reflects a broader trend among mortgage lenders seeking innovative tech solutions to reduce reliance on third-party vendors and lower loan origination costs in a highly competitive market.
The integration is expected to lower the cost of originating a loan by at least 20%, allow Lower to recoup acquisition costs within the first year and cut loan delivery times from under 21 days to just 10 days, Snyder said.
While Lower will continue to utilize some vendors for niche products and programs, Snyder added that the company aims to process 90% of its loans through the platform by the end of 2025.
Snyder said that the new platform, which is both web-based and mobile-optimized, enables multiple users to collaborate on the same loan simultaneously. It aligns with the company’s three core objectives: accelerating speed, reducing costs and providing guidance for consumers and originators.
Founded in 2015, Neat Labs raised over $50 million across seven funding rounds, with major backing from Forecast Labs and Left Lane Capital, according to CrunchBase data.
Neat Labs originated over $1 billion in loans before rising mortgage rates and increased market competition led the company to pivot from origination 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 at Maxwell.
“With LowerOS, borrowers can get approved significantly faster than they can today. It’ll make getting a mortgage feel more like a car loan or a credit card,” Herschleb said in a statement.
Lower, founded in 2014, claims to be the 28th U.S. home lender and is backed by Accel Partners, SoFi, and Veritex Ban. In December 2023, the company acquired Texas-based lender Thrive Mortgage and, in the previous month, Denver-based Universal Lending announced it became a division of Lower.
According to Snyder, Lower doubled its volume in 2024 and is projecting growth of 40% to 50% in 2025. The company’s primary focus this year is on same-store sales growth, with teams encouraged to outperform the market by 20%.
While Snyder indicated that acquisitions are no longer a priority, he left the door open: “If there are good founders looking to roll into a bigger company, we’d certainly be interested. But we’re not actively hunting for acquisitions like we were last year.”
As of Monday, the Nationwide Mortgage Licensing System (NMLS) reported Lower had 535 sponsored loan officers and 87 active branch locations. Snyder added that the company has returned to profitability and maintains a strong cash position.
