Tidalwave has raised $22m in a Series A round as the company looks to accelerate its reach across the U.S. lending market.
The round was led by Permanent Capital, with participation from D.R. Horton, Inc., and follow-on backing from Engineering Capital. This latest investment brings the company’s total funding to $24m.
The funding round marks a significant step for the company, which aims to modernise one of the most manual and fragmented parts of the U.S. financial system. Tidalwave operates in the mortgage technology sector, deploying autonomous software agents to streamline end-to-end tasks such as verification and underwriting. Its model is designed to support lenders struggling with outdated workflows that continue to rely on manual data entry and disconnected systems.
The company’s approach uses agentic AI to remove friction throughout the mortgage lifecycle, cutting processing times and reducing human error. Tidalwave’s direct integrations with Fannie Mae and Freddie Mac provide instant underwriting verification, while links with Plaid, Argyle and Truv enable real-time checks on income, employment and assets. The aim is to reduce delays for borrowers and cut costs for lenders, with research from Freddie Mac indicating that automation tools can lower origination costs by around $1,500 per loan.
Tidalwave plans to use the new funding to accelerate adoption of its platform, with projections that its technology could process more than 200,000 loans each year. This would represent around 4% of the $1.46tn in U.S. mortgage originations expected in 2026, according to the Mortgage Bankers Association. The company also intends to expand the buildout of its intelligent AI agents, enhancing support for borrower engagement and lender productivity.
Over the past six months, several mortgage industry players, including NEXA Lending, First Colony Mortgage and Mortgage Solutions, have adopted Tidalwave’s platform. The company said these firms have used its technology to improve application flows, speed up approvals and reduce paperwork.
Tidalwave CEO and co-founder Diane Yu said, “The mortgage industry has long been reliant on disjointed tools and manual intervention, leading to costly delays and errors. With this new funding, we’re supercharging the buildout of intelligent AI agents, allowing us to get these tools into the hands of lenders and borrowers faster than ever. By accelerating adoption, we’re not only making the mortgage process more efficient, we’re also ensuring that every stakeholder, from loan officers to homebuyers, experiences the tangible benefits of real, scalable AI in action.”
Permanent Capital co-founder and managing partner Jason Duboe said, “After evaluating all companies in this category, Tidalwave stood out for its powerful application of real AI to solve a massive, industry-wide problem. Their technology is already delivering measurable impact, and we are confident in their vision to transform the mortgage landscape.”
DHI Mortgage CEO Mark Winter said, “This partnership represents an alignment of vision, innovation, and execution. Both of our companies share the goal of advancing the mortgage process through AI by empowering our people and providing powerful new tools to enhance quality and efficiency. Over the past few months, we’ve had the privilege of working closely with Diane Yu and her team and we are confident that together we will transform lending for years to come.”
The company has previously raised $2m in earlier funding, contributing to its total capital of $24m to date.
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