Brace

Brace, founded in 2017 by Eric Rachmel and Amr Mohamed, operates as a financial software company that developed a digital mortgage-servicing platform. The firm is headquartered in Culver City, California, with additional operations in New York. Founder Eric Rachmel, prior to establishing Brace, was a venture capitalist at firms including Industry Ventures and Propel Venture Partners, where he gained insight into the fintech sector and identified a lack of technological advancement in debt servicing, particularly within the paper-based mortgage industry. This experience directly informed the creation of Brace.

The company's core offering is its Default Management Platform, an end-to-end solution designed to streamline the loss mitigation lifecycle for mortgage servicers, lenders, and investors. The platform provides a connected infrastructure that manages workflows, communications, and reporting to help determine appropriate outcomes for homeowners facing delinquency. For consumers, it offers a guided digital interface accessible 24/7, allowing them to apply for assistance, submit documentation, and monitor their application's progress. The business model is centered on providing this technology to financial institutions, counting several of the top ten largest U.S. mortgage servicers among its clients.

Brace's platform became particularly relevant during the economic shifts caused by the COVID-19 pandemic, as it helped lenders manage an increase in nonperforming loans and mortgage forbearances. The company has raised over $30 million in funding through multiple rounds, including a Series B in January 2021 led by Canvas Ventures. In a significant milestone, Brace was acquired by Stavvy, a fintech company specializing in digital real estate and lending collaboration, on August 1, 2023. The acquisition aimed to create a unified service covering all critical stages of default servicing, from the initial homeowner inquiry to the final resolution.

Keywords: mortgage servicing, default management, loss mitigation, fintech, loan servicing platform, RegTech, mortgage technology, digital mortgage, non-performing loans, financial software, delinquency management, forbearance, real estate technology, Stavvy, Eric Rachmel, Amr Mohamed, Canvas Ventures, mortgage investors, lending technology, asset servicing