Brace and Palisades Announce Strategic Investment and Partnership
SANTA MONICA, Calif., Oct. 8, 2019 /PRNewswire/ -- Brace, a provider of mortgage servicer software solutions used to streamline complex borrower loss mitigation processes, has announced a strategic investment and partnership with The Palisades Group, a market-leading residential whole loan investment and asset management firm.
Brace, which came out of stealth mode in early 2019, successfully raised close to $5 million in capital to accelerate and expand its technology development focused on providing the market with a digital solution to streamline one of the most inefficient and costly aspects of residential mortgage loan servicing - the borrower loss mitigation process. Brace's investor base includes Crosslink Capital and other large reputable venture capital backers.
"Palisades is excited to e working in partnership with Brace. We believe in the technology application as it creates a much-needed solution across the spectrum of mortgage loan servicers, whole loan investors as well as borrowers," said Jack Macdowell, Palisades' Founding member and Chief Investment Officer.
Recently Brace was selected from a crowded field of emerging fintech companies by Flagstar Bank to participate in Flagstar's first ever Mortgage Tech Accelerator. In addition to the Flagstar mandate, Brace's technology is garnering the interest of, and gaining acceptance by, a group of forward-thinking mortgage loan servicers as a way to create a more streamlined and transparent experience for borrowers encountering financial hardships.
Palisades has managed in excess of $13 billion of non-performing, sub-performing and reperforming residential loans both for global private equity and insurance clients, as well as for its own discretionary investment funds. The firm has extensive experience in the quantitative valuation of various residential loan products and has taken an active role in servicer oversight, default management, and optimization of loss mitigation activities. Given Palisades' unique position within the market, the partnership enhances Brace's relationship with servicers and provides sophisticated insight into investor needs.
"Brace's revolutionary customer centric engagement platform delivers a long overdue rebuild of mortgage servicing technology that has the potential to be the end-to-end solution that streamlines the entire defaulted mortgage servicing process for all parties involved," said Caleb Reed, Palisades' Director of Data Science.
"Aligning with an asset manager like Palisades not only lends credibility to what we have already built at Brace, but it also provides us with direct access to whole loan and mortgage servicing rights (MSR) investors and servicers to further create new innovative product offerings which are catered to investors' needs," said Eric Rachmel, Brace's CEO.
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