Stamford-Based Mortgage Lender Tomo To Move Headquarters To NYC

STAMFORD, CT — Tomo, a financial technology startup company that utilizes AI to lower mortgage rates for homebuyers, will move its headquarters from 2200 Atlantic St. in Stamford to Manhattan on March 17.

The company announced on Tuesday that it has raised $20 million in Series B financing, bringing its total investment to $130 million. The latest funding round included Progressive Insurance as a new investor, as well as existing investors Ribbit Capital, NFX, and DST Global Partners.

Tomo said its decision to relocate stems from a need to access a larger talent network. Funds will be used for team and product growth to meet demands, including hiring loan officers and other professionals in Detroit, Seattle and NYC.

Currently, there are 28 employees at the Stamford office, and many of them already commute to CT from New York City, according to the company.

When Tomo announced in 2021 that it would open its corporate headquarters in Stamford, the CT Department of Economic and Community Development (DECD) said it would support the move with "earn-as-you-grow" incentives that would provide grants in arrears as job targets were reached.

At the time, Tomo said it expected to employ up to 100 people in Stamford by the end of the year.

However, that agreement was ultimately never entered into, Tomo confirmed with Patch Tuesday.

"DECD put forward a strong program, and have been responsive and supportive. Ultimately, given the nature of our young company, we concluded that we weren't in a position to make a long-term commitment so didn't execute the agreement," Tomo CEO Greg Schwartz told Patch in a written statement. "As with any early-stage company, there was and still is much for us to learn about our needs."

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Tomo was founded in October 2020 by Schwartz and Carey Armstrong, former Zillow executives.

The company uses AI to streamline sales and underwriting processes, allowing homebuyers to get an accurate mortgage quicker and less expensive than other mortgage lenders.

According to Tomo, the typical homebuyer saves $4,000 at closing, with interest rates, on average, .5 percent lower than the industry and up to 1 percent lower than some of the biggest lenders.

"Despite a stagnant mortgage industry in 2024, Tomo achieved 3.5x growth and is on track to be one of the largest mortgage companies in the U.S.," the company said in an announcement.

Tomo now operates in 31 states, including Washington, D.C.

Requests for comment from CT-DECD and Mayor Caroline Simmons' office were not immediately returned Tuesday.