Stavvy, the Boston-based startup behind a platform that digitises the mortgage closing process, has raised more than $40 million in a Series A funding round led by Morningside Technology Ventures.
Launched in late 2019, Stavvy says its "eClosing" technology makes the complex legal and financial transactions associated with buying a home easier, safer, and more accessible.
During the pandemic, as Americans under financial duress continue to face losing their homes, the startup has also seen demand and interest grow in its technology for loan servicing.
Stavvy is now working with Flagstar Bank, the sixth-largest bank mortgage originator in the country, to provide remote loan modification services.
Ken Creech, CIO, servicing, Flagstar, says: "Stavvy’s digital technology has helped Flagstar efficiently and securely assist homeowners seeking relief with their mortgage payments due to Covid-19.
"Thanks to Stavvy, we can process more requests to help customers more quickly, reduce errors in the signature process, and even better, walk homeowners through their loss mitigation closing during this difficult time."
With the funding in place, Stavvy plans to make senior hires. The firm has already brought in Shane Hartzler, former director for eMortgage strategy and operations at Fannie Mae, as chief strategy officer.
“When we launched Stavvy in late 2019, we had no idea what was in store for the world in 2020. We’re proud of the technology we’ve developed to help homeowners and buyers in this challenging time, and grateful for this opportunity to amplify our services and impact,” says Stavvy co-founder Josh Feinblum.