Digital mortgage-servicing platform Brace announced that it raised around $10 million more in Series A funding. It’s led by Point72 Ventures. The investment round brought the company’s total funds to $15 million within two years.
The company will use these funds to expand its platform. They’ll get more SaaS technology to impact other segments within the mortgage servicing lifecycle. At the same time, they will grow their client base.
Brace developed a modular, digital platform dedicated to mortgage servicing. It aims to improve the customer experience while reducing service costs. With this pioneered software solution, Brace helps to improve communication and promote transparency among investors, homeowners, and services.
Take note, this Brace platform automates workflows, easing the decision-making process for these people. According to Brace CEO Eric Rachmel, Point72 Ventures added a lot of value to their team due to their resources and expertise. This will help them further their development efforts as well as facilitate product expansion.
As of the moment, servicers use technology from decades ago when managing millions of mortgages in the U.S. It’s a problem that gets worse for servicers managing non-performing borrowers. With that, Brace takes a new approach that focuses on making the servicing process more modernized.
They do this by using software modules and services catered to specific mortgage servicing infrastructures. It deviates from the generic servicing systems that will often miss necessary nuances.
In a statement, Point72 Ventures Partner Tripp Shriner says that Brace is brimming with the potential in revolutionizing mortgage servicing. It’s an industry that’s long overdue for a change. They’re impressed by Brace’s progress in badgering complicated problems in the industry while developing solutions beneficial to all involved parties.
Brace’s recent success comes from their partnerships with important mortgage investors and top-tier servicers. For example, The Palisades supported Brace in their efforts to streamline processes at its sub-servicers. It’s a $13 billion asset management firm and one of the company’s most strategic partners.
Another firm that works closely with Brace is Flagstar Bank. After all, they made its first-ever mortgage technology accelerator. They have a lot of beneficial partnerships that allow these institutions to get innovations while working with Brace, modernizing their processes using expertise and technology.
The entire industry benefits from Brace’s approach to default servicing, according to senior vice president of Default Mortgage Servicing at Flagstar Bank Courtney Thompson. She said that Flagstar is excited about their partnership with Brace, and they’re glad that it’s gaining more attention and traction in the industry.
Brace’s current project is to develop a full suite of digital solutions specifically for service non-performing mortgage loans. They’re the company behind the first fully-integrated workflow automation software solution. It helps in streamlining delinquent mortgage servicing.
As for Point72 Ventures, it’s a global venture capital firm helmed by domain experts, with offices in San Francisco, New York City, Stamford, and Palo Alto. They have enough capital to lead rounds through the company’s growth. Their primary investments revolve around Fintech, AI/ML, and Enterprise technologies.