Flagstar announces graduates of latest mortgage tech accelerator

Flagstar Bank revealed the fintech graduates of its latest MortgageTech Accelerator program, which is designed to assist startups whose work aims at driving innovation in home lending technology.

Hailing from the East and West Coasts, the four companies going through the accelerator specialize in processes related to facilitating the renter-to-homeownership pipeline, audit review and compliance, renovation lending and income verification.

The latest class includes two New York-based firms: Housetable, who offers tools to help issue equity-backed second liens for renovations; and Landis, whose platform provides a rent-to-own model to assist aspiring buyers achieve homeownership. 

Also among the latest group is Certo/ai, an artificial-intelligence powered data-review system used across lending operations, including underwriting, audit and compliance, with offices in Washington, D.C.; and Greenline, a San Francisco startup similarly employing AI with income verification tools to streamline lending to self-employed borrowers and small-business owners.

Through the program, Flagstar allows the chosen fintechs to test their models and software in situations involving existing banking clients and loan portfolios, while providing potential opportunities to continue the relationship with the lender post graduation.  

"Thanks to the collaboration of Flagstar's leadership team, we were able to apply our data and automated technology to real-world cases Flagstar experiences today," said Gene Swanzey, co-founder of Certo/ai.

The latest round of participants represents the fourth accelerator class supported by Flagstar and the first since its merger with New York Community Bank was approved late last year. With its headquarters now in Hicksville, New York, company officials retained the Flagstar name and pledged to continue offering the tech accelerator program. 

"The mortgage accelerator has been tremendously successful for Flagstar, helping us stay at the forefront of innovations in the mortgage industry and deliver a better experience to our customers," said Lee Smith, president of mortgage for Flagstar, in a press release. "It's a win-win all around," he said.

The bank offers graduates one-on-one access to senior leaders on Flagstar's mortgage team, along with other mentorship, networking and coaching opportunities. Flagstar also advises each company on topics concerning technology integration, pricing strategy and product roadmaps.

"Through hands-on experience, we were able to enhance our suite of products and gain insights into the dynamics of a leading mortgage originator and large-scale bank, all of which helped us better tailor our services as a strategic vendor," said Housetable Co-Founder and CEO David Benizri.

While several financial institutions, including Barclay's, BMO Financial Group and Bank of America, offer similar tech programs to support new startups, Flagstar's accelerator is the only one geared specifically toward serving home lending and adjacent segments. 

The unveiling of the latest fintechs to emerge from the accelerator coincides with a recent merger announcement coming from two alums of the program. Stavvy, who completed the program in 2020, reached a deal to acquire servicing startup Brace, one of the inaugural 2019 participants. The acquisition is expected to bolster Stavvy's servicing capabilities alongside its existing technology-based lending and closing solutions.  

Flagstar expects to launch its fifth accelerator program in early 2024, it said. In reviewing fintech applicants, the bank looks for innovators working in all facets of the mortgage industry, from origination and servicing to compliance and secondary markets, while considering their strategies in addressing goals spelled out in the Community Reinvestment Act. Flagstar measures progress of startups' product development, their potential for growth and likely CRA impact in making its selections.