Citi has made a minority investment in Pylon, a next-generation mortgage infrastructure provider, aiming to enhance market access for smaller players. Announced in a joint statement on Tuesday (Nov. 26), the partnership will integrate Citi’s institutional-grade mortgage trading liquidity into Pylon’s platform, offering customers access previously reserved for major market participants.
“Pylon’s intelligent, multi-product platform aligns with Citi’s commitment to innovation,” said Patrick Brett, head of Citi SPRINT Investments. “This collaboration will amplify the reach of our Spread Products business, bringing Wall Street-grade access to Pylon’s growing user base.”
The investment was made jointly through Citi’s Spread Products Investment Technologies (SPRINT) unit and Citi Ventures. Citi joins Pylon’s roster of prominent investors, including Conversion Capital, Allegis Capital, Peter Thiel, QED, and Fifth Wall.
Founded in 2022, Pylon delivers programmatic mortgage origination and funding through APIs, serving banks, lenders, wealth managers, homebuilders, and servicers. CEO Trent Hedge described the partnership as a “significant milestone,” stating, “Our connectivity with Citi’s mortgage trading desk unlocks opportunities for smaller market players to access liquidity like never before.”
This collaboration comes as the mortgage sector faces tightening credit conditions. The Federal Reserve Bank of New York’s recent Credit Access Survey revealed rejection rates for mortgages, auto loans, and refinances are at their highest since 2013. Meanwhile, the typical age of a homebuyer has climbed to 56, reflecting growing affordability challenges.
Citi and Pylon’s initiative aims to address such challenges, empowering borrowers and lenders with streamlined access to capital markets in an increasingly competitive housing landscape.
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