Inside the $13T Mortgage Machine

The $13T U.S. mortgage market serves 50M homeowners but still runs on decades-old software. 

In this episode, a16z GP Angela Strange hosts Tim Mayopoulos (ex-CEO of Fannie Mae and ex-president of Blend), Mike Yu (co-founder and CEO of Vesta), and Andrew Wang (co-founder and CEO of Valon) to unpack why standardization and regulation slow change, and how modern loan-origination and servicing platforms, cleaner data, and AI can cut costs, boost transparency, and reduce errors. They also discuss policy levers that could speed innovation and what a true one-tap mortgage could look like.

 

Timecodes: 

00:00 Introduction 

00:59 The Scale and Structure of the US Mortgage Market

01:33 Why Mortgage Tech is Slow to Change

02:00 Challenges of Standardization and Regulation

03:41 The Human Side of Home Buying

07:43 Old Software and Its Impact on Homeowners

11:16 Data Transparency and Capital Markets

13:17 Building New Mortgage Infrastructure: LOS and Servicing

16:22 Operational Challenges and Opportunities in Servicing

22:04 Driving Digital Adoption at Fannie Mae

25:15 Modernizing Data and Appraisals

28:27 Core Replacement vs. Wrappers: Tech Strategies

35:29 AI in Mortgage: Today and Tomorrow

40:42 AI, Regulation, and the Future of Compliance

43:54 Advice for Lenders Preparing for an AI Future

47:49 Visions for the Future of Mortgages

 

Resources: 

Find Angela on X: https://x.com/astrange

Find Tim on LinkedIn: https://www.linkedin.com/in/timothy-j-mayopoulos-56972a45/

Find Andrew on LinkedIn: https://www.linkedin.com/in/wangandrewd/

Find Mike on LinkedIn: https://www.linkedin.com/in/mikeyu1/

 

Stay Updated: 

Find a16z on X: https://x.com/a16z 

Find a16z on LinkedIn: https://www.linkedin.com/company/a16z 

Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX?si=3E8B3qT9TyiwAHJ7JnaKbg

Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711

Follow our host: https://twitter.com/eriktorenberg

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

Stay Updated:

Find a16z on YouTube: YouTube

Find a16z on X

Find a16z on LinkedIn

Listen to the a16z Show on Spotify

Listen to the a16z Show on Apple Podcasts

Follow our host: https://twitter.com/eriktorenberg

 

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.