Candor Technology, a leading provider of automated underwriting technology for the mortgage industry, has successfully closed a Series B equity round to expand its Loan Engineering System’s capabilities and enhance user experience. The funding was led by Rice Park Capital Management, based in Minneapolis, with participation from Arthur Ventures, Assurant Ventures, the management team, and other industry leaders.
Candor’s Loan Engineering System, the only patented software of its kind, assists licensed loan officers, underwriters, and processors in creating a “decision-ready” loan file compliant with investor guidelines. Various entities in the mortgage industry, including brokers, banks, independent mortgage bankers, correspondent lenders, and QC providers, utilize the system to focus on borrower data eligibility, quality, and completeness. The system helps identify exceptions and accelerates decision-making, ultimately improving borrower satisfaction and loan quality.
Mark Hinshaw, newly appointed CEO of Candor, expressed excitement about joining the Rice Park family of companies. He highlighted Rice Park’s unique synergies, industry relationships, knowledge, and hands-on business approach as valuable assets for Candor’s mission to be a leading software solutions provider for mortgage lenders.
The partnership with Rice Park positions Candor strategically to enhance capabilities and better serve clients in a market where interest rates are declining, and mortgage loan volumes are recovering. Candor’s technology addresses concerns related to high fixed costs of manual underwriting processes, labor volatility, and loan quality.
Mark Hinshaw, with a significant mortgage background and experience in privately owned businesses, brings extensive leadership experience from institutions like Bank of America, JP Morgan Chase, Fifth Third Bank, Digital Risk, and private-equity-backed companies.
Chris Bixby, Managing Director of Strategic Equity Investing at Rice Park Capital, expressed excitement about leading the Series B round and providing an active role on the board. He highlighted Mark’s well-equipped leadership, citing his experience at Digital Risk, where he served as CFO and played a crucial role in guiding the company through a successful exit.
Candor, retaining its experienced management team, aims to revolutionize the mortgage industry with new technology solutions. The company plans to announce its Strategic Advisory Board, consisting of investors, customers, and industry experts, to support future growth initiatives.
