Vesta Raises $30 Million to Expand AI Agents in Mortgage Lending

Vesta raised $30 million in funding as the artificial-intelligence startup expands software that helps mortgage lenders automate loan-origination tasks and use AI agents in underwriting.

Conversion Capital led the round. Three Vesta customers, including Pennymac and New American Funding, also invested alongside Citi Ventures and Andreessen Horowitz. The financing brings Vesta’s total funding to $85 million.

Vesta CEO Mike Yu said the company’s revenue is up 12x year over year and that its software has helped lenders originate more than $100 billion in loans a year. Vesta remains below 5% market share, he said.

Customers can assign tasks to Vesta’s agents and decide how much human oversight to use. Some lenders begin with employees approving the agents’ work before allowing them to handle a share of loans with greater independence. Some lenders also use the agents in mortgage underwriting, while the companies remain responsible for underwriting decisions.

The system records actions and the reasoning behind decisions for compliance and auditing, Yu said.

A U.S. mortgage takes around 40 days to close and costs around $11,000 per loan, with most of the expense tied to human labor, Yu said. Vesta is also developing a personal assistant for mortgage issuers that can perform tasks and track workflows.

Yu co-founded Vesta with Devon Yang in 2020. He said advances in AI models have improved the ability of agents to follow instructions through complex, multistage processes. Vesta identified Claude Sonnet 4.5 as a major improvement in following user-configured instructions over the extended periods required for mortgage work.

Vesta competes with traditional mortgage systems such as ICE Mortgage Technology and AI-native companies including Xpanse. Yu said the company’s immediate priority is to win more business across the mortgage industry before expanding in directions shaped by customer demand.