A special-purpose acquisition company is merging with a bank as its affiliated startup still lacks its own national bank charter.

The seed round was led by Conversion Capital and also includes backing from Blend, Zillow and Figure.

The New York-based startups also undertook large headcount reductions in the spring.

The platform allows homeowners to pay for their mortgage and recommends other home services of value.

The New York-based software provider will provide post-closing quality control and quality assurance reviews.

The New York-based company announced it will use ACES' quality management and control software.

The online lender approved Black applicants at lower rates than non-Hispanic whites, according to a law firm that monitors its artificial intelligence models. Upstart said it's an industry leader in fair lending but acknowledged room for improvement, calling disparities "an industry-wide challenge."

A new group called MoreThanFair aims to establish the lines between fair and unfair lending, to set best practices for the use of AI in lending and to lessen the stigma of fintech lenders.

The Consumer Bankers Association and the Center for Responsible Lending said the Consumer Financial Protection Bureau should renew its efforts to level the regulatory playing field between larger bank and nonbank companies that make installment and other kinds of personal loans.

The San Francisco-based company recently raised $14 million in Series A funding and closed more than $400 million in sales in the first quarter.