Vesta Raises $30M to Automate Mortgage Lending With AI Agents

Vesta has raised $30 million in funding, led by Conversion Capital, to expand its AI-powered mortgage-lending software. The round brings the startup’s total funding to $85 million as it introduces autonomous agents to handle loan-processing tasks.

Three of Vesta’s mortgage lending customers, including Pennymac and New American Funding, participated alongside Citi Ventures and Andreessen Horowitz. Founded in 2020 by Mike Yu and Devon Yang, the company develops software that helps lenders manage mortgage applications from origination through underwriting.

Vesta Uses AI Agents to Automate Mortgage Processing

The Vesta platform lets lenders assign multiple AI agents to different stages of mortgage processing, including document review and workflow management. The company is also developing a personal assistant to help loan officers track tasks and manage applications.

According to Yu, Vesta’s CEO, closing a U.S. mortgage takes approximately 40 days and costs around $11,000 per loan. He said much of that expense comes from human labour, and applications often get delayed while awaiting manual review.

Vesta’s approach allows lenders to introduce automation gradually. Customers can initially require employees to approve agent actions before permitting the software to handle selected loans independently. Some lenders also use the agents to support or make underwriting decisions.

Human Oversight and Compliance Remain Central

Yu emphasised that lenders remain responsible for underwriting decisions, whether employees or AI systems do the work. Vesta records agent actions and the reasoning behind decisions to support compliance reviews and audits.

The company’s latest capabilities follow improvements in AI models that Yu said have made multistep mortgage workflows more practical to automate. He specifically identified Anthropic’s Claude Sonnet 4.5 as an important improvement in following user instructions across extended tasks.

Before these advances, Vesta concentrated on developing the underlying data architecture for mortgage automation. That foundation now supports agents that can carry out more complex sequences of work.

Vesta Reports Twelvefold Revenue Growth

Yu said demand for Vesta’s software has accelerated, with revenue increasing twelvefold year over year. Despite that growth, he said the company holds less than 5% of its target market and plans to invest in hiring and additional products.

The startup competes with established mortgage technology providers such as ICE Mortgage Technology and AI-focused companies including Xpanse. Yu argues that Vesta’s AI-native architecture makes it easier to integrate autonomous workflows than systems originally designed around manual processes.

The new financing will support product development and Vesta’s efforts to reach more mortgage lenders. The company reports its growth figures and efficiency claims, while lenders remain responsible for how they use automated decisions.