Mortgage servicing startup Stavvy has acquired its rival platform, Brace, in a strategic acquisition aimed at addressing inefficiencies in the mortgage servicing industry caused by outdated technology. The acquisition is expected to position Stavvy as a leader in the sector and enable the company to provide a more dynamic and streamlined experience for its consumers.
Stavvy, based in Boston, plans to deliver a comprehensive solution that covers every critical stage of default servicing, from the initial homeowner inquiry to the ultimate resolution. The company’s team of industry experts, along with investments in generative AI and customizable workflows, aims to reduce the reliance on antiquated mortgage processes and revolutionize the experience for all stakeholders involved.
With the combined skills and resources of both companies, servicers and homeowners will have access to a more comprehensive and integrated servicing experience. Stavvy has been known for pioneering the first digital loan modification, while Brace offers an end-to-end loss-mitigation process. The acquisition is expected to give the combined organization a competitive advantage in a turbulent market.
The CEOs of both Stavvy and Brace expressed enthusiasm for the acquisition, highlighting the alignment of their visions to streamline real estate transactions and tackle inefficiencies in the mortgage industry. They believe the union of their companies will empower homeowners, servicers, lenders, and investors with intuitive tools to optimize their mortgage assets.