Lower inks deal to acquire origination software firm

National mortgage lender Lower announced a new acquisition of an origination-software firm, the latest move in the company's growth ambitions.

The company revealed details behind its planned merger with technology firm Neat Labs on Tuesday and intends to integrate its proprietary originations tool into its own operating platform, now known as LowerOS. Previously based in Boulder, Colorado, Neat Labs has been behind the origination of over $1 billion in loans since its 2015 inception, with closing coming in as fast as 10 days, it claimed.

With the deal, Neat Labs co-founder Steve Herschleb will join the Lower executive team, holding the title of chief technology officer. Before launching Neat Labs, he served as chief product officer at mortgage fintech Maxwell, bringing with him experience in building and scaling new technology. In addition to co-founding the company, Herschleb also held the chief technology officer role at Neat Labs. 

Financial terms of the deal were not disclosed. The news was first reported by Housingwire.

"We're thrilled to bring Neat Labs into the Lower family. Their technology is the foundation of our next chapter," said Lower CEO and co-founder Dan Snyder in a press release. 

In his new role, Herschleb will help oversee development of the LowerOS platform, opening up self-serve access for consumers to Neat Labs' underwriting engine that offer a view into the loans and payment plans specifically available to them, the lender noted. 

"LowerOS will change the way consumers think about getting a mortgage," Herschleb said. "With LowerOS, borrowers can get approved significantly faster than they can today. It'll make getting a mortgage feel more like a car loan or a credit card."

The latest deal marks another phase in Lower's growth this decade, which has featured acquisitions of several lenders over the past three years. In late 2023, the company merged with Thrive Mortgage, almost doubling in size with the transaction. Around the same time, Lower also added several branches previously belonging to Premier Nationwide Lending.

In previous interviews, Snyder hinted Lower was on the lookout for potential merger opportunities, and the company has also made no secret of its ambitions to turn itself into a top-five lender. For all of 2023, the company ranked as the 31st largest producer by dollar volume, according to Scotsman Guide. 

The acquisition of Neat Labs also marks the first notable merger announcement so far in 2025, following a year that saw deals slow from the previous two. Mortgage rate pressures may open the door for more M&A transactions over the next 12 months if they remain near current levels and fail to drive borrower activity, industry experts noted.