Stavvy, a company that is digitizing the mortgage closing process, announced a $40+ million Series A round this week led by Morningside Technology Ventures. The Boston-based proptech startup, founded in 2019, will use the additional capital to add talent and accelerate growth in its banking and lending solutions which have seen an increase in demand as a result of the COVID-19 crisis.
“When we launched Stavvy in late 2019, we had no idea what was in store for the world in 2020,” Stavvy co-founder Josh Feinblum said. “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.”
Dubbed the largest Series A funding for a New England-based fintech to date, the investment was accompanied by an announcement that Stavvy had forged an alliance with Flagstar Bank, the sixth largest bank mortgage originator in the country. The partnership will enable the bank to offer remote loan modification services and help homeowners who are in need of relief in the waning days of the pandemic.
“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,” Flagstar CIO of Servicing Ken Creech said.
Named to HousingWire’s 2021 Tech100 Mortgage Winners roster, Stavvy leverages e-signatures and video conferencing to “bring real estate lending and servicing into the 21st century” in the words of company co-founder Kosta Ligris. Along with its remote notary capacity, Stavvy’s eClosing functionality makes it easier for businesses to safely conduct complicated, location-agnostic, legal and financial transactions.