Fort Washington's LoanLogics, created only seven months ago by a merger, has raised $11.2 million in venture capital to broaden its customer base in the mortgage lending industry. The investment comes from Volition Capital in Boston and existing investors.
The mortgage industry has been rocked to its foundation in recent years “and therein lies the opportunity,” says CEO Brian Fitzpatrick. “It's been storming pretty bad and we offer shelter.”
Or, more specifically, software solutions that improve the transparency and reliability of the mortgage process – from loan origination through sales and servicing of loan assets to eventual pay off.
Outdated technology can't cope with the battery of rules, requirements and scrutiny resulting from the mortgage crisis, says Fitzpatrick. So, five years ago, Aklero Risk Analytics, a client of Ben Franklin Technology Partners of Southeastern Pennsylvania, and New Jersey's NYLX began looking at a merger.
The combined company, LoanLogics, claims to be the industry's first enterprise loan quality and performance analytics platform that improves loan quality, validates compliance, improves profitability and manages risk. Fitzpatrick says the technology makes it possible for five to do what was once the job of 50 – and with more accuracy – at any concern that has to vet loans – banks, mortgage insurers, investors and others.
LoanLogics has a workforce of 92, about 50 at the Pennsylvania headquarters and the rest in offices in New Jersey and Florida. The company plans to hire sales and marketing personnel as it expands its reach domestically and Fitzpatrick projects a workforce of about 170 in two years. Most of that growth will be in Trevose, where the company is moving in March to a new, 11,000-square-foot headquarters.
Source: Brian Fitzpatrick, LoanLogics
Writer: Elise Vider