Stavvy, a Boston-based fintech, announced Monday that it landed a $40 million Series A funding round led by Morningside Technology Ventures. The company says the round is the largest Series A for a New England fintech and it plans to use the capital to double or even triple its staff by the first quarter of 2022.
“We are adding resources to engineering, security and trust, product, industry relations, legal, compliance and more. The goal is to hire the best and brightest in the industry, as well as brave and curious engineers and product leaders that don’t just build but innovate,” said Stavvy Co-founder Kosta Ligris.
Stavvy has already been focused on targeted hires, most recently adding Shane Hartzler, former director for eMortgage strategy and operations at Fannie Mae, as chief strategy officer.
Notable in light of the current servicing challenges facing the industry, Stavvy’s eClosing technology is designed to facilitate faster borrower communication and closings as servicers work through loan modifications, referrals and forbearance.
“Our first goal was to make mortgage lending easier and more accessible, but we’ve been intentional in recognizing that our technology can be used to facilitate so much more, including commercial lending, servicing, foreclosure and more,” Ligris said. “COVID19 certainly accelerated development and focus on servicing, coming out of 2019 with record low default and foreclosure.”
How modernized servicing creates customers for life
We’re a year into the pandemic, and while smart policy has delayed a default wave, the threat still looms large. Servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors, and stewards of consumer protection to regulators.
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In addition to the funding round, Stavvy also announced its alliance with Flagstar Bank, the sixth-largest bank mortgage originator in the country, to provide remote loan modification services.
“Stavvy’s digital technology has helped Flagstar efficiently and securely assist homeowners seeking relief with their mortgage payments due to COVID-19,” said Ken Creech, CIO of servicing for Flagstar. “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.”
The funding caps a period of intense growth period for Stavvy. In January the company integrated with ICE Mortgage Technology’s Encompass Digital Lending Platform and in March, Stavvy became a MISMO Certified Remote Online Notarization Provider. The company was recognized as one of the 2021 HW Tech100 winners for its native eSign and hybrid transaction tools.
“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,” said Stavvy Cofounder Josh Feinblum.
The lead investor in the Series A round, Morningside Technology Ventures, is a private equity and venture capital investment firm based in Cambridge and Hong Kong.
“Stavvy has the technology, team, and strategy to be at the forefront of the global digital transformation of financial services,” said Gerald Chan of Morningside Technology Ventures. “We are confident in Stavvy’s ability to change the lending and banking experience for both institutions and consumers. We are especially proud to support the company’s efforts to enable COVID loan relief during these unprecedented times.”
