Los Angeles: Brace, a digital mortgage-servicing platform, today announced that it raised an additional $15.7M in Series B funding led by Canvas Ventures. The investment round included participation from existing major investors, including Point72 Ventures and Crosslink Capital. The round closed in late 2020, just 10 months after Brace raised its Series A, bringing the Company’s total funding to over $30M.
Brace has seen tremendous growth in 2020, adding a number of the largest mortgage servicers to its client base. “An enormous amount of value is locked inside legacy core systems, and in this past year the COVID-19 crisis has been a catalyst for speeding up innovation in servicing,” said Eric Rachmel, CEO of Brace. The Company will use the new funding to expand its team, broaden the suite of services it offers, and bolster future product initiatives.
Brace developed a modular, digital platform for mortgage servicing that not only improves the customer experience but reduces the cost to service delinquent borrowers in loss mitigation. The current environment, in which more borrowers are experiencing financial hardships, has caused servicers to rethink existing workaround solutions and offline processes to solve these tough problems. In 2020, Brace received a No-Action Letter (NAL) Template from the Consumer Financial Protection Bureau (CFPB) that its customers can utilize to obtain their own NAL. According to the CFPB’s press release: “Digitizing the loss mitigation application process has the potential to improve a process that is experiencing an increase in loss mitigation requests from consumers due to the COVID-19 pandemic.”
“We’re thrilled to add Canvas Ventures to the Brace family and to see such strong support from our existing investors. Canvas Ventures general partner Rebecca Lynn brings more than 20 years of fintech operating and investing experience and we look forward to partnering with her on our path to defining a market-leading servicing platform,” says Eric. “This year has been transformative for Brace and we look forward to working with our clients to power the future of servicing for years to come.”
According to Rebecca, “Brace has been able to successfully navigate a highly complex and regulated environment while building trust with large, well-regarded mortgage servicers. We are proud to partner with a team that is steadfast with their laser focus approach to disruption through best-in-class software.”
Brace continues to be a leader in the unbundling of the servicing technology stack. Brace’s microservices approach allows it to meet the unique needs of its customers. The company differentiates itself by providing a solution enabling seamless customization and modular development based on client-specific needs. Its loss mitigation solution includes key features such as a self-serve borrower platform with workflow and decisions that allows servicers to pick and choose which tools they would like to deploy, doing away with the pain of ripping out and replacing large legacy systems.