Tidalwave raises $22 million Series A to improve the mortgage process with AI

Core Insights - Tidalwave, a startup co-founded by Diane Yu, aims to simplify the mortgage process using agentic AI technology integrated with Fannie Mae and Freddie Mac, raising $22 million in Series A funding [1][2]. Company Overview - Tidalwave was co-founded in 2023 by Diane Yu, Jack Deng, and Cheng Li, focusing on automating mortgage document evaluations and providing real-time multilingual feedback to borrowers [1]. - The startup has raised $22 million in Series A funding, led by Permanent Capital, with participation from D.R. Horton and Engineering Capital [1]. Industry Context - The U.S. mortgage market is projected to reach $1.46 trillion in originations by 2026, with Tidalwave targeting to process over 200,000 loans annually, representing approximately 4% of this market [2]. - The current high interest rate environment is making home buying increasingly unaffordable, prompting the industry to seek innovative solutions to reduce costs for borrowers [3]. Technological Impact - Tidalwave believes that AI can enhance loan officer efficiency and improve borrower support, allowing for clearer communication and enabling potential homeowners to ask questions more freely [2]. - The company envisions a future where the mortgage process becomes significantly faster and more efficient, catering to a younger generation accustomed to digital interactions [4].