Mortgage fintech
The digital mortgage company, which offers artificial intelligence technology aimed at making data submissions and decisioning for distressed loans more efficient and compliant, will also add Canvas general partner Rebecca Lynn as a board member.
The investment announced Tuesday is Canvas’ first in the company. Existing investors also participated in the funding round, including billionaire New York Mets majority owner Steve Cohen’s Point72 Ventures, and CrossLink Capital. Brace has raised more than $30 million in total.
The funding will be used to further build out the automation Brace provides for distressed loan servicing and to expand into related services the company plans to provide, Brace CEO Eric Rachmel said.
A rise in unemployment associated with the pandemic has increased the volume of distressed loans in the market over the course of the past year, and mortgage company interest in managing the process has grown as a result. Rachmel declined to comment how much customer growth there has been in response but noted that the company has a wide-ranging client base for its white-label technology, which manages the distressed loan cycle from forbearance to permanent outcome.
“We’re working with smaller customers to the largest institutions in the country,” he said.
Compliance responsibilities, which
Mortgage companies can use the Consumer Financial Protection Bureau letter as a template for a safe harbor from certain Real Estate Settlement Procedures Act timelines and Fair Debt Collection Act provisions associated with distressed servicing, Rachmel said.
