Bucks County tech firm raises $10M in Series B round
LoanLogics, a Trevose provider of mortgage compliance software, hasn’t slowed down in a market defined by consumer protection.
The recently merged company raised a $10 million Series B to pan out its research and development, and to increase its marketing and sales teams. The round was led by Blue Cloud Ventures in New York.
It brings LoanLogics total funding to more than $20 million, following its $11.3 million Series A in November 2013.
“Our technology contains all those loan quality rules about what needs to get validated and checked,” LoanLogics CEO Brian Fitzpatrick said. “Mortgage companies have armies of people that do this. It’s just literally small armies. Our tech is taking in the documents and data electronically.”
LoanLogics will check all of these documents against regulations set forth by the Consumer Financial Protection Bureau, and it ensures both the lender and the borrower are protected by representations and warranties insurance.
So complex are compliance regulations that Fitzpatrick said the cost of processing a mortgage loan has risen from $2,700 to $8,000 since 2009.
LoanLogics has an interesting history. It began as an angel-funded company called Aklero Risk Analytics just after the financial crisis in 2007. Fitzpatrick was hired in 2009, and he said he knew that a serious fallout was coming, but he couldn’t have predicted the extent.
Before the crisis, Aklero saw success in a company called NYLX had in helping lenders price mortgages. The two firms merged in 2013, combing NYLX’s pricing savvy and Aklero’s technology.
Today, the crisis has cooled, but all the measures to keep it from happening again remain, allowing LoanLogics to scale in the marketplace.
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