Flagstar supports mortgage fintechs that could help address capacity issues

Flagstar Bank (NYSE: FBC) recently completed the second cohort of its mortgage accelerator. The bank says it is the first startup accelerator to focus exclusively on mortgage technology, a subvertical of proptech.

The bank opened for applications in September. Flagstar encouraged startups focusing on compliance, credit and quality, marketing, origination, processing, sales, maintenance, and underwriting to apply. The bank ultimately chose three companies.

The MortgageTech Accelerator Program

Flagstar is the sixth largest bank mortgage originator in the country – a worthy candidate to launch a program like this.

The bank said up front that it was looking for “companies working on breakthroughs in all facets of the mortgage industry, including origination, processing, marketing, management, compliance, sales, underwriting, credit and quality assessment. Among the selection criteria were the company’s progress and growth prospects. “

Flagstar Default Mortgage Manager and program sponsor Courtney Thompson added, “With the pandemic accelerating innovation in the mortgage industry, the timing couldn’t be better for a program that introduces new paradigms. and technology solutions for legacy processes … The results of this program strengthen our industry and position Flagstar to continue providing technology products to our customers. “

What is there for startups?

Startups accepted into the program have access to mentors with in-depth industrial and technical experience. Flagstar also gives the companies in the cohort the opportunity to test their products in a controlled real world environment. The bank is also opening up its vast network of potential clients and investors.

The three companies

Three companies were accepted into this most recent cohort.

Stavvy is a fully integrated digital platform for mortgage providers that enables mortgage banking professionals to seamlessly and securely communicate and access vendor data and deliverables without fragmentation or exposure to unnecessary risk. Started by seasoned banking, security and legal professionals familiar with the challenges facing the mortgage industry, Stavvy’s mission is to create efficiency and security in the consumer loan lifecycle. Mortgages.

Home Lending Pal is promoting itself as “your personal AI-powered mortgage advisor.” What does this really mean? The company helps first-time homebuyers through the process of finding and buying a home. According to a Flagstar press release, “Home Lending Pal’s business model differs from typical markets in that it connects to trusted digital sources to validate underwriting information earlier in the process for potential borrowers.” .

RealKey is developing a cloud-based platform to help streamline the mortgage processing experience for borrowers. The company does this by automating the document collection, verification and review processes.

Millionacres net profit

Whether you own or own, you encourage businesses like this cohort to be successful. Adoption by historical industry players like Flagstar will help accelerate the adoption of technology in the mortgage industry, which will be good for them as it can help increase capacity. It will also help put downward pressure on the overall cost of the mortgage experience for borrowers, which is good for everyone involved.

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