Brace, a digital mortgage-servicing platform, today announced that it has raised an additional $10M in Series A funding led by Point72 Ventures.
The investment round, which received participation from existing investors, including Crosslink Capital, brings the company’s total funding to $15M in less than two years.
The financing will be used to expand the Company’s platform with additional SaaS technology impacting other segments within the lifecycle of mortgage servicing while also growing their client base.
Brace developed a modular, digital platform for mortgage servicing that improves the customer experience and reduces the cost to service. By pioneering this new software solution for mortgage servicers, Brace improves communication and transparency among homeowners, servicers and investors. Importantly, Brace’s platform automates workflows to ease decisioning among these core constituencies.
“Point72 Ventures adds significant value to our team with its deep bench of resources and expertise that will support us in furthering business development efforts, go-to-market strategy, and product expansion. Right now, servicers are forced to use decades-old technology to manage millions of US mortgages—a problem that gets much worse for servicers who manage borrowers that are non-performing,” said Eric Rachmel, CEO of Brace. “We take a different approach that is focused on modernizing the servicing process with software modules and services for mortgage servicing infrastructure, instead of the one-size-fits-all servicing system that often misses important nuances.”
Tripp Shriner, Partner at Point72 Ventures, said, “We believe Brace has the potential to revolutionize mortgage servicing, which is an industry that is primed for change. We’re impressed by the progress Brace has already made in tackling complex industry problems and developing solutions that benefit everyone involved in the process.”
Brace’s recent success stems from partnering with prominent mortgage investors as well as leading servicers. The Palisades Group, a $13 billion asset management firm and one of Brace’s strategic partners, has supported Brace in streamlining processes at its sub-servicers. Additionally, Brace successfully completed Flagstar Bank’s first-ever mortgage technology accelerator earlier this year and continues to work closely with the bank. By working directly with servicers and investors, these mutually beneficial partnerships provide institutions with the opportunity to innovate and work with Brace to modernize their infrastructure and processes with a combination of technology and industry expertise.
“The whole industry has a stake in the fresh approach Brace is taking to default servicing,” said Courtney Thompson, senior vice president of Default Mortgage Servicing at Flagstar Bank. “It’s been exciting for Flagstar to have Brace as a partner in our mortgage tech accelerator, and we couldn’t be happier about the attention and traction they are gaining in the marketplace. We can’t wait for the next chapter.”