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Mortgage servicing startup Stavvy acquires rival platform Brace

Stavvy, the fintech company reshaping digital and remote collaboration for lending and real estate, announced its strategic acquisition of Brace, a servicing technology company addressing the long-standing inefficiencies and lack of transparency stemming from outdated technologies in mortgage servicing.

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Through this strategic acquisition, the collective team and technology solidifies its position as a servicing leader, providing a more dynamic and streamlined experience for both servicers and homeowners in a historically fragmented system.

Homeowners, particularly those enduring financial hardships, face limited access to comprehensive empowerment capabilities within the current mortgage servicing landscape. With the acquisition of Brace, Stavvy emerges as the solution that empowers homeowners with the long-sought self-service capabilities that servicers and other industry stakeholders have advocated for over the past several years. It also addresses the longstanding concerns of the Consumer Financial Protection Bureau (CFPB) around servicers offering better and faster avenues for early resolution, rather than relying on antiquated phone and mail processes.

“Stavvy and Brace’s unified services are set to deliver an unparalleled solution, encompassing every critical stage of default servicing - from the initial homeowner inquiry to the ultimate resolution,” said Kosta Ligris, CEO and Founder of Stavvy. "Our unified team of industry experts combined with research and investments in generative AI and customizable workflows positions Stavvy to independently reduce the need for antiquated mortgage processes, revolutionizing the experience for all stakeholders involved."

With this acquisition, servicers and homeowners looking for mortgage assistance have access to an intuitive, streamlined platform that allows them to interact on their terms, fostering increased transparency and improved operational efficiencies. The combined services provide a comprehensive end-to-end digital experience for homeowners and servicers that is unmatched in the marketplace.

Homeowners can now apply, submit documentation, track progress, receive a prompt decision, and electronically execute relevant documents. The advantages of this innovation are not limited to homeowners alone. Equipped with cutting-edge technology, servicers can now provide a highly efficient and streamlined service, elevating the servicing experience for homeowners.

Stavvy and Brace have solidified their position as key partners to some of the largest servicers and lenders in the United States, spearheading the industry's technological adoption. Now, these esteemed customers have access to an extensive suite of solutions, granting them a competitive advantage even in challenging market conditions.

Stavvy's innovative approach and digital mortgage platform have revolutionized lending and real estate processes, creating seamless and efficient experiences for businesses and homeowners alike by enabling flexible closing options. As an industry trailblazer, Stavvy achieved notable milestones by pioneering the first digital loan modification and the first Ginnie Mae digital loan modification, demonstrating their unwavering commitment to driving the digital transformation of the mortgage industry.

As a new class of servicing technology, Brace has offered an integrated experience that supports the entire end-to-end loss-mitigation process. By empowering every member of the mortgage ecosystem to manage their finances more effectively, Brace has received recognition and validation for its innovative solutions. The company secured a coveted CFPB no-action letter template for its loss mitigation platform, affirming its compliance with industry regulations. Additionally, Brace has been at the forefront of digital verification to streamline the loss mitigation process through a digital asset report, paving the way for greater efficiency and effectiveness in servicing operations.

"Stavvy's vision of streamlining real estate transactions aligns seamlessly with Brace’s unwavering dedication to tackle the inefficiencies and foster transparency within the mortgage industry," said Eric Rachmel, CEO of Brace. "I am thrilled with the union of our companies and know we are set to empower homeowners, servicers, lenders, and investors with intuitive tools to optimize their mortgage assets.”

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